Netskope stock initiated with Buy rating at BTIG on SASE market growth

Investing.com - BTIG initiated coverage on Netskope (NASDAQ:NTSK) with a Buy rating and a $27.00 price target on Monday. The company, currently trading at $21.75 with a market capitalization of $8.31 billion, has generated revenue of $615.51 million in the last twelve months. According to InvestingPro analysis, the stock is currently trading above its Fair Value.

The research firm views Netskope as a top-three vendor and one of two pure-plays addressing the large and rapidly growing market for Secure Access Service Edge (SASE), according to its research note. InvestingPro data shows the company maintains a healthy gross profit margin of 68.86%, though it’s not yet profitable. InvestingPro subscribers can access 3 additional key insights about Netskope’s financial position.

BTIG conducted independent field checks with over nine contacts including partners and industry analysts to assess the broader network security market, along with group calls with another nine partners and customers focused on Netskope’s competitive standing.

The firm’s research indicates the network security market is increasingly shifting toward SASE form factors, with Netskope receiving positive commentary on its core Secure Service Edge capabilities and consistently appearing in shortlists among large enterprise customers.

BTIG also highlighted Netskope’s opportunity in tangential product categories such as SDWAN and Data Protection, which expands the company’s total addressable market by almost 60%, as well as its plans to increase quota-bearing sales headcount by 80% over the next three years.

In other recent news, Netskope has garnered significant attention from multiple analyst firms with several positive ratings. TD Cowen initiated coverage on Netskope with a Buy rating, highlighting the company’s potential to disrupt a $150 billion market while maintaining revenue growth exceeding 30% over the long term. Mizuho also began coverage with an Outperform rating, citing Netskope’s scalable and robust SASE platform that sets it apart in the security sector. Deutsche Bank added to the positive sentiment by initiating coverage with a Buy rating, emphasizing Netskope’s leadership in cloud security and its appeal to customers seeking advanced network edge security. BMO Capital shared a similar view, initiating with an Outperform rating and noting the favorable impact of artificial intelligence on the security industry. Piper Sandler concluded the series of positive evaluations with an Overweight rating, pointing to Netskope’s rapid growth and improved margins driven by its advanced technology and strategic market approach. These developments underscore the growing confidence in Netskope’s position within the cybersecurity landscape.

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