RBC Capital initiates Netskope stock with Outperform rating on SASE growth

Investing.com - RBC Capital initiated coverage on Netskope (NASDAQ:NTSK) with an Outperform rating and a $26.00 price target on Monday. The stock, currently trading at $21.75, is near its 52-week low of $21.00.

The cybersecurity company, which recently went public on September 18, 2025, at $19 per share, is well-positioned to capitalize on trends in Secure Access Service Edge (SASE) technology, according to RBC Capital. With a market capitalization of $8.3 billion and trailing twelve-month revenue of $615.5 million, Netskope maintains a healthy gross margin of 68.9%.

RBC highlighted Netskope’s "differentiated, cloud-native platform that converges networking, security and analytics," noting that data and AI security represent emerging opportunities and likely the next growth phase for the company.

The financial services firm projects that Netskope can maintain durable growth exceeding 20% while building profitability over time.

RBC’s $26 price target is based on 14.0x and 11.5x enterprise value to sales multiples for calendar years 2026 and 2027, respectively, which the firm believes is warranted by the company’s growth trajectory and improving profitability profile.

In other recent news, Netskope has been the subject of analyst attention following its initial public offering on September 18, 2025. Citizens initiated coverage of the cybersecurity firm with a Market Outperform rating, setting a price target of $27.00. Similarly, KeyBanc began coverage with an Overweight rating and the same price target, highlighting Netskope’s potential as a leading beneficiary of shifts in network security and data protection. Beyond analyst ratings, Netskope announced enhancements to its Universal Zero Trust Network Access (UZTNA) solution. The updates include new context-aware device intelligence features, improving visibility and policy decisions based on device posture, risk, and role. These developments mark significant advancements for Netskope as it navigates the evolving landscape of cybersecurity.

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