In a report released today, Shaul Eyal from TD Cowen maintained a Buy rating on Netskope, Inc., with a price target of $30.00.
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Shaul Eyal’s rating is based on Netskope, Inc.’s strategic positioning to benefit from the ongoing shift of enterprises towards cloud and hybrid networks, coupled with the adoption of advanced AI technologies. The company is poised to capture market share from traditional providers that are struggling to meet modern cloud demands, thanks to its comprehensive SASE platform hosted on its proprietary NewEdge network. This infrastructure, which spans 120 data centers across 75 regions, allows for real-time, context-aware policy enforcement with minimal latency, positioning Netskope well for future growth.
Despite trading at a discount compared to its peer ZS, due to investor skepticism about reaching operating break-even by 2027, Netskope’s strong demand trends suggest a promising outlook. The company is expected to outperform its peers in revenue and free cash flow growth over the next two years, supported by positive momentum in the SASE market. This potential for growth, alongside its high ranking in Gartner’s reports, underpins Eyal’s Buy rating for Netskope.
In another report released on December 1, KeyBanc also reiterated a Buy rating on the stock with a $27.00 price target.