Netskope price target raised to $28 from $27 at KeyBanc

KeyBanc analyst Eric Heath raised the firm’s price target on Netskope (NTSK) to $28 from $27 and keeps an Overweight rating on the shares. The firm notes the company reported solid Q3 results as ARR accelerated 1pt to 34% year-over-year, NNARR again grew over 45% year-over-year, and margins beat. Q4 revenues guided solidly above. Netskope is seeing strong momentum as the SASE market is healthy, sales capacity is accelerating, and productivity rates improving. KeyBanc remains positive on Netskope’s differentiation with the NewEdge network, granular data security capabilities, and single platform vs. peers, along with the secular shift to cloud-delivered network security and rising importance of data security due to AI.