Royal Bank Of Canada Issues Positive Forecast for Netskope (NASDAQ:NTSK) Stock Price

Key Points

• Royal Bank of Canada raised Netskope’s price target to $20 from $18 and maintained an “outperform” rating, implying 40.54% upside from the prior close. Analysts overall give the stock a “Moderate Buy” consensus with an average target of $18.92.
• Netskope reported quarterly revenue of $220.54 million and an adjusted loss of $0.03 per share, significantly exceeding the consensus loss estimate of $0.26. Management also issued fiscal 2027 revenue guidance above analyst expectations and narrowed its projected EPS loss.
• The stock rose 3.5% to $14.23, while institutional investors added positions and insiders made notable purchases. Despite improving results and guidance, Netskope remains unprofitable and carries a debt-to-equity ratio of 4.06.

Netskope (NASDAQ:NTSK - Get Free Report) had its price objective raised by analysts at Royal Bank Of Canada from $18.00 to $20.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would suggest a potential upside of 40.54% from the company's previous close.

A number of other equities analysts also recently issued reports on NTSK. TD Cowen reaffirmed a "buy" rating and set a $19.00 price objective on shares of Netskope in a report on Monday, August 17th. BTIG Research raised their price target on shares of Netskope from $17.00 to $18.00 and gave the company a "buy" rating in a research report on Thursday. BMO Capital Markets restated an "outperform" rating and set a $18.00 price target on shares of Netskope in a report on Thursday. Wells Fargo & Company increased their price objective on shares of Netskope from $13.00 to $17.00 and gave the company an "overweight" rating in a research note on Monday, August 17th. Finally, Deutsche Bank Aktiengesellschaft set a $17.00 target price on shares of Netskope in a research report on Monday, August 17th. Sixteen investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Netskope has a consensus rating of "Moderate Buy" and an average target price of $18.92.

Netskope Stock Up 3.5%

NTSK stock traded up $0.48 during mid-day trading on Thursday, reaching $14.23. 3,557,350 shares of the company traded hands, compared to its average volume of 4,625,087. The stock has a market cap of $5.75 billion and a price-to-earnings ratio of -70.89. The company has a quick ratio of 2.16, a current ratio of 2.17 and a debt-to-equity ratio of 4.06. Netskope has a fifty-two week low of $7.66 and a fifty-two week high of $27.99. The firm's 50 day moving average price is $13.27 and its 200 day moving average price is $11.27.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its quarterly earnings data on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, topping the consensus estimate of ($0.26) by $0.23. The company had revenue of $220.54 million during the quarter. Netskope has set its FY 2027 guidance at -0.150--0.150 EPS and its Q3 2027 guidance at -0.040--0.030 EPS. As a group, equities research analysts predict that Netskope will post -0.88 EPS for the current fiscal year.

Insider Activity at Netskope

In related news, Director William J.G. Griffith bought 610,291 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were purchased at an average cost of $11.82 per share, for a total transaction of $7,213,639.62. Following the completion of the purchase, the director directly owned 610,291 shares in the company, valued at $7,213,639.62. The trade was a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, major shareholder Iconiq Strategic Partners Viii bought 610,291 shares of Netskope stock in a transaction dated Wednesday, July 8th. The shares were bought at an average cost of $11.82 per share, with a total value of $7,213,639.62. Following the completion of the transaction, the insider directly owned 610,291 shares in the company, valued at approximately $7,213,639.62. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders purchased 1,833,380 shares of company stock valued at $21,960,909 and sold 3,529,696 shares valued at $33,002,807. 25.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Netskope

Several institutional investors have recently bought and sold shares of NTSK. Wasatch Advisors LP bought a new stake in shares of Netskope in the second quarter valued at $25,107,000. Swedbank AB bought a new position in shares of Netskope during the 4th quarter worth $1,801,000. Principal Financial Group Inc. increased its holdings in Netskope by 31.4% in the 1st quarter. Principal Financial Group Inc. now owns 2,547,468 shares of the company's stock worth $21,628,000 after acquiring an additional 608,355 shares during the last quarter. New York Life Insurance Co. bought a new stake in Netskope in the 2nd quarter valued at about $11,325,580. Finally, Bank of New York Mellon Corp lifted its holdings in Netskope by 1,381.8% during the first quarter. Bank of New York Mellon Corp now owns 475,918 shares of the company's stock valued at $4,041,000 after purchasing an additional 443,800 shares during the last quarter.

More Netskope News

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Strong quarterly results: Netskope reported fiscal Q2 revenue of approximately $220.5 million, up 29% year over year, while adjusted EPS of ($0.03) exceeded the consensus estimate of ($0.26). Annual recurring revenue rose 27% to $899 million, and management said results exceeded guidance across every key metric. Netskope fiscal Q2 financial results
• Positive Sentiment: Raised outlook: Netskope forecast fiscal 2027 revenue of $888 million to $892 million, above the $881 million analyst consensus, and narrowed its expected EPS loss to approximately $0.15 versus the consensus loss estimate of $0.32. Third-quarter revenue guidance of $227 million to $229 million and EPS guidance of ($0.04) to ($0.03) also exceeded analyst expectations. Netskope raises fiscal 2027 outlook
• Positive Sentiment: Analyst support increased: Rosenblatt raised its price target to $19 and assigned a Buy rating, BTIG lifted its target to $18 with a Buy rating, and Robert W. Baird raised its target to $20 with an Outperform rating. Analysts collectively rate NTSK “Moderate Buy.”
• Neutral Sentiment: Netskope remains unprofitable, reporting a quarterly loss, but the better-than-expected results and guidance suggest improving operating performance as demand for cloud and AI security grows.

About Netskope

We are redefining security and networking for the era of cloud and AI. The cloud and AI have completely revolutionized work. We are more dispersed, more productive, and more automated than ever before, and the rate of change is only accelerating. Not since the internet has there been such a transformative tectonic shift. But, with it has come collateral damage-traditional security and networking are now broken. We founded Netskope to address this revolution. We built Netskope One, our unified, cloud-native platform from the ground up to solve the challenge of securing and accelerating the digital interactions of enterprises in this new era.

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