Netskope (NASDAQ:NTSK) Price Target Cut to $18.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley cut its price target on Netskope from $27 to $18 but kept an "overweight" rating, with the new target implying about a 48% upside from the current share price.
• Netskope posted a Q4 beat—($0.04) EPS vs. ($0.06) estimate—and 32% YoY revenue growth to $196.3M, with ARR up ~31% to $811M and FY‑2027 revenue guidance raised to $870–$876M, slightly above Street estimates.
• Potential near‑term risks include heavy insider selling (over 1,049,721 shares worth roughly $18.0M in the last 90 days) and a shareholder investigation that could create legal/headline volatility.

Netskope (NASDAQ:NTSK - Get Free Report) had its target price lowered by Morgan Stanley from $27.00 to $18.00 in a report released on Thursday,Benzinga reports. The firm currently has an "overweight" rating on the stock. Morgan Stanley's price target points to a potential upside of 48.39% from the stock's current price.

Several other research firms have also issued reports on NTSK. Weiss Ratings restated a "sell (d-)" rating on shares of Netskope in a research report on Monday, December 29th. Wells Fargo & Company began coverage on Netskope in a research report on Tuesday, March 3rd. They issued an "overweight" rating and a $13.00 price target for the company. FBN Securities began coverage on shares of Netskope in a research note on Wednesday, February 25th. They set an "outperform" rating and a $15.00 price objective for the company. BTIG Research dropped their target price on shares of Netskope from $27.00 to $22.00 and set a "buy" rating on the stock in a research report on Monday, March 2nd. Finally, TD Cowen reduced their price target on shares of Netskope from $30.00 to $25.00 and set a "buy" rating for the company in a research report on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $22.24.

Netskope Stock Performance

NASDAQ NTSK opened at $12.13 on Thursday. The company has a debt-to-equity ratio of 5.17, a current ratio of 2.32 and a quick ratio of 2.32. The firm has a 50-day simple moving average of $13.50. The firm has a market cap of $4.77 billion and a price-to-earnings ratio of -121.30. Netskope has a one year low of $9.13 and a one year high of $27.99.

Netskope (NASDAQ:NTSK - Get Free Report) last issued its quarterly earnings data on Wednesday, March 11th. The company reported ($0.04) earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.02. The firm had revenue of $196.33 million during the quarter. The business's quarterly revenue was up 32.2% compared to the same quarter last year. Netskope has set its Q1 2027 guidance at -0.070--0.060 EPS and its FY 2027 guidance at -0.190--0.190 EPS.

Insider Transactions at Netskope

In other news, CRO Raphael Bousquet sold 3,823 shares of the stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $16.66, for a total transaction of $63,691.18. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CEO Sanjay Beri sold 346,061 shares of the stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $16.91, for a total transaction of $5,851,891.51. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,049,721 shares of company stock worth $18,020,279 in the last 90 days.

Institutional Investors Weigh In On Netskope

Several institutional investors and hedge funds have recently bought and sold shares of NTSK. ICONIQ Capital LLC bought a new position in Netskope in the 3rd quarter valued at approximately $1,506,261,000. Scge Management L.P. bought a new stake in shares of Netskope during the 3rd quarter valued at about $312,104,000. Vanguard Group Inc. increased its stake in Netskope by 51.5% in the fourth quarter. Vanguard Group Inc. now owns 5,332,708 shares of the company's stock valued at $93,536,000 after purchasing an additional 1,812,857 shares in the last quarter. Massachusetts Financial Services Co. MA increased its holdings in shares of Netskope by 11.7% during the fourth quarter. Massachusetts Financial Services Co. MA now owns 3,561,508 shares of the company's stock valued at $62,469,000 after acquiring an additional 373,529 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. raised its stake in shares of Netskope by 14.7% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 3,556,583 shares of the company's stock worth $62,383,000 after purchasing an additional 456,321 shares during the last quarter.

Netskope News Summary

Here are the key news stories impacting Netskope this week:

• Positive Sentiment: Q4 results beat and strong growth — Netskope reported ($0.04) EPS vs. consensus ($0.06) loss and revenue of $196.3M, up 32% YoY; ARR grew ~31% to $811M and operating cash flow was positive. These operational metrics support higher revenue visibility and justify valuation re‑rating potential. GlobeNewswire Press Release
• Positive Sentiment: FY revenue target raised above consensus — Management set FY 2027 revenue guidance of $870M–$876M vs. Street $865.5M, and Q1 revenue guidance roughly in line with consensus. The modest upside to revenue estimates is a near‑term catalyst. Seeking Alpha: Revenue Target
• Positive Sentiment: AI product launch supports forward growth story — Netskope unveiled “Netskope One AI Security,” positioning the company as an AI‑native security platform; this can expand enterprise wallet share and justify premium multiples if adoption follows. Business Insider: Netskope One AI Security
• Positive Sentiment: Analyst sentiment supports demand — Brokerages’ consensus is “Moderate Buy,” which can encourage inflows from institutional and momentum investors. American Banking News: Analyst Consensus
• Neutral Sentiment: Guidance mixed on profitability — Q1 EPS guide of -$0.07 to -$0.06 is slightly wider/near‑term pressured vs. consensus (-$0.06), while FY EPS range (-$0.19 to $0.19) is roughly in line to a touch better than expectations; revenue guidance is the more constructive element. Investor Presentation
• Neutral Sentiment: Earnings call and transcript available — Management commentary and slide deck provide detail on product cadence, sales efficiency and AI roadmap; watch for customer traction metrics on future calls. Seeking Alpha: Call Transcript
• Negative Sentiment: Shareholder investigation announced — Law firm Johnson Fistel is investigating potential claims against Netskope executives under federal securities laws; such probes can create legal/settlement risk and near‑term headline volatility. GlobeNewswire: Investigation

Netskope Company Profile

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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