Netskope price target lowered to $14 from $19 at RBC Capital

RBC Capital analyst Matthew Hedberg lowered the firm’s price target on Netskope (NTSK) to $14 from $19 and keeps an Outperform rating on the shares. The company’s Q4 saw annualized recurring revenue growth beating consensus and guidance expectations, but the “nit” of the quarter was the deceleration of annualized recurring revenue growth, lower net retention rate, and a relatively smaller beat as investors look to calibrate the cadence of Netskope beat/raise trends, the analyst tells investors in a research note. RBC adds that its price target cut is driven by peer multiple compression.