TLDR
- Stephens initiated coverage on Netskope (NTSK) with an overweight rating and a $21 price target, implying 24% upside from $17.
- NTSK stock surged 15.65% following a wave of analyst upgrades and raised price targets from JPMorgan, RBC Capital, and BMO Capital.
- Netskope beat Q2 fiscal 2027 earnings, posting a loss of 3 cents per share vs. the expected 7-cent loss, with revenue of $221 million topping the $214.2 million forecast.
- The company raised its full-year outlook after the earnings beat, with annual recurring revenue growing 27% year over year.
- NTSK has surged 75% over the past six months, though it is down 16% year to date and analysts note heavy operating losses remain a concern.
Netskope (NTSK) stock jumped 15.65% on Monday after a wave of analyst price target increases and fresh Wall Street coverage pushed the stock higher. The stock was trading around $17 before the move, and now carries a new $21 price target from Stephens.
Netskope, Inc. Class A Common Stock, NTSK
Stephens kicked off coverage with an overweight rating, setting that $21 target based on an enterprise value-to-forward revenue multiple of roughly 9x. That target implies about 24% upside from current levels.
The firm said it views investor sentiment toward the SASE space and Netskope specifically as too negative. It believes the market is overlooking the company’s growth runway and competitive positioning.
Stephens expects Netskope to deliver revenue growth above 20% on a sustained basis, alongside margin expansion. The company has already posted 30% revenue growth over the last twelve months, which the firm cited as evidence of strong execution.
The initiation comes on the back of strong fiscal Q2 2027 results. Netskope reported an adjusted loss of just 3 cents per share, well ahead of the 7-cent loss Wall Street had expected.
Q2 Results Drive Raised Outlooks
Revenue came in at $221 million for the quarter, topping the consensus estimate of $214.2 million. Following the beat, Netskope raised its full-year guidance.
Several other firms moved their price targets higher after the earnings report. BMO Capital lifted its target to $18, pointing to steady quarterly performance and an improved annual recurring revenue outlook.
Piper Sandler raised its target to $20, noting growing traction in Netskope’s AI security pipeline. RBC Capital also moved to a $20 target, citing 27% year-over-year growth in annual recurring revenue.
Morgan Stanley set its price target at $16, attributing the company’s momentum to AI-driven growth and new customer wins.
The analyst activity followed meetings with JPMorgan and fresh commentary from RBC and BMO, which broadly signaled growing confidence in the company’s outlook.
Profitability Still a Work in Progress
Despite the bullish tone from analysts, Netskope still carries heavy operating losses and a leveraged balance sheet. Stephens acknowledged these risks, noting that any slowdown in execution or growth could weigh on the stock.
Four analysts have recently revised their earnings estimates upward, according to InvestingPro. The data service currently shows the stock as overvalued relative to its Fair Value estimate.
NTSK has gained 75% over the past six months, though it remains down about 16% year to date. Average daily trading volume sits at around 5.5 million shares.
Stephens said strong second-half fiscal 2027 results could serve as a further catalyst through upside to estimates and multiple expansion.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
