Netskope Inc. (NASDAQ:NTSK) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts maintain a “Moderate Buy” consensus on Netskope, with 15 buy ratings, one strong buy, three holds and one sell among 20 firms. The average 12-month price target is $17.71.
• Netskope exceeded fiscal Q2 expectations, reporting a loss of $0.03 per share versus the expected $0.26 loss and revenue of $220.5 million, up 29% year over year. Annual recurring revenue increased 27% to $899 million.
• The company issued stronger-than-expected guidance for both the third quarter and fiscal 2027, including full-year revenue of $888 million to $892 million versus an $881 million consensus estimate, while projecting a narrower-than-expected EPS loss.

Netskope Inc. (NASDAQ:NTSK - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty research firms that are presently covering the firm, MarketBeat.com reports. One investment analyst has rated the stock with a sell recommendation, three have assigned a hold recommendation, fifteen have given a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among brokerages that have covered the stock in the last year is $17.7105.

Several brokerages have recently issued reports on NTSK. Mizuho set a $16.00 price objective on Netskope in a research note on Wednesday, August 19th. BMO Capital Markets decreased their price target on Netskope from $14.00 to $13.00 and set an "outperform" rating for the company in a report on Thursday, June 4th. Wells Fargo & Company increased their price objective on Netskope from $13.00 to $17.00 and gave the company an "overweight" rating in a report on Monday, August 17th. Piper Sandler cut their target price on Netskope from $21.00 to $18.00 and set an "overweight" rating on the stock in a research report on Thursday, June 4th. Finally, Royal Bank Of Canada boosted their target price on Netskope from $13.00 to $18.00 and gave the stock an "outperform" rating in a research note on Friday, August 14th.

Key Netskope News

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Quarterly results exceeded estimates. Netskope reported a fiscal Q2 loss of $0.03 per share, substantially narrower than the $0.26 loss analysts expected. Revenue reached approximately $220.5 million, or about $221 million, up 29% year over year. Netskope Fiscal Q2 Earnings Snapshot
• Positive Sentiment: Recurring revenue growth remained strong. Annual recurring revenue rose 27% year over year to $899 million, supporting the investment case for Netskope’s subscription-based cybersecurity and networking business. Netskope Announces Strong Second Quarter Fiscal 2027 Financial Results
• Positive Sentiment: Third-quarter guidance topped consensus. Netskope forecast revenue of $227 million to $229 million, compared with analysts’ estimate of $226.6 million, and projected an EPS loss of $0.03 to $0.04 versus the expected $0.07 loss. Netskope Q3 Revenue Guidance
• Positive Sentiment: Full-year expectations were raised above estimates. Fiscal 2027 revenue guidance of $888 million to $892 million exceeded the $881 million consensus forecast, while the projected EPS loss of $0.15 was materially better than the expected $0.32 loss.
• Neutral Sentiment: Market coverage identified Netskope as one of the biggest after-hours movers, with the reaction centered on the earnings beat and stronger outlook. Stocks Making the Biggest Moves After Hours

Netskope Price Performance

Shares of NTSK opened at $13.75 on Thursday. 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. The company has a market cap of $5.55 billion and a P/E ratio of -68.75. 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 (NASDAQ:NTSK - Get Free Report) last issued its quarterly earnings results on Wednesday, September 2nd. The company reported ($0.03) EPS for the quarter, beating the consensus estimate of ($0.26) by $0.23. The business 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. On average, research analysts forecast that Netskope will post -0.88 earnings per share for the current fiscal year.

Insider Activity at Netskope

In related news, major shareholder Iconiq Strategic Partners Viii acquired 64,771 shares of Netskope stock in a transaction dated Monday, July 13th. The stock was acquired at an average price of $12.42 per share, for a total transaction of $804,455.82. Following the transaction, the insider owned 916,690 shares of the company's stock, valued at $11,385,289.80. This represents a 7.60% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director William J.G. Griffith bought 64,771 shares of the stock in a transaction dated Monday, July 13th. The stock was bought at an average price of $12.42 per share, with a total value of $804,455.82. Following the acquisition, the director owned 916,690 shares in the company, valued at approximately $11,385,289.80. This represents a 7.60% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders purchased 1,833,380 shares of company stock worth $21,960,909 and sold 3,529,696 shares worth $33,002,807. 25.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Netskope

A number of hedge funds and other institutional investors have recently made changes to their positions in NTSK. Wasatch Advisors LP acquired a new position in Netskope during the second quarter worth $25,107,000. Swedbank AB purchased a new position in Netskope in the fourth quarter worth $1,801,000. Principal Financial Group Inc. lifted its holdings in Netskope by 31.4% in the first quarter. Principal Financial Group Inc. now owns 2,547,468 shares of the company's stock valued at $21,628,000 after acquiring an additional 608,355 shares during the period. New York Life Insurance Co. acquired a new stake in Netskope in the second quarter valued at $11,325,580. Finally, Strs Ohio purchased a new stake in shares of Netskope during the 4th quarter worth $2,719,000.

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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