Netskope stock initiated with Buy rating at TD Cowen on SASE growth

Investing.com - TD Cowen initiated coverage on Netskope (NASDAQ:NTSK) with a Buy rating and a $30.00 price target on Monday. The company, currently trading at $21.75 near its 52-week low, has a market capitalization of $8.31 billion.

The research firm views Netskope as well-positioned to disrupt a total addressable market opportunity of approximately $150 billion while sustaining revenue growth of over 30% in the longer term. According to InvestingPro data, the company generated revenue of $615.51 million in the last twelve months, with a healthy gross margin of 68.86%.

TD Cowen cited three primary factors supporting its positive outlook: Netskope’s leading end-to-end AI-driven SSE/SASE platform that addresses hybrid networks, significant opportunities to displace legacy security providers, and numerous greenfield opportunities in the security space.

The firm also highlighted Netskope’s scaling SaaS model with a net revenue retention rate of 117%, which it believes will likely demonstrate high levels of profitability over the long term.

Netskope specializes in security service edge (SSE) and secure access service edge (SASE) solutions that help organizations secure their cloud environments and network access points.

In other recent news, several financial firms have initiated coverage on Netskope, highlighting the company’s position in the cybersecurity market. Mizuho has given Netskope an Outperform rating with a $25.00 price target, noting its scalable and robust SASE platform. Deutsche Bank also initiated coverage with a Buy rating and the same price target, emphasizing Netskope’s leadership in cloud security and its ability to provide advanced security without compromising user experience. BMO Capital shared a positive outlook with an Outperform rating and a $26.00 price target, pointing to artificial intelligence as a long-term growth driver for the company. Piper Sandler has rated Netskope as Overweight, setting a $28.00 price target, and highlighted its significant growth potential and improved margins. Meanwhile, Morgan Stanley also issued an Overweight rating with a $27.00 price target, citing Netskope’s potential for consistent growth in the SASE and AI security markets. These developments underscore the strong confidence financial analysts have in Netskope’s future prospects.

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