BTIG Starts Netskope (NTSK) at Buy

BTIG analyst Gary Powell initiates coverage on Netskope (NASDAQ: NTSK) with a Buy rating and a price target of $27.00.

The analyst comments "We are initiating coverage on NTSK with a Buy rating and a $27 price target. We see NTSK as a top-three vendor and one of two pure-plays addressing a large and rapidly growing market for Secure Access Service Edge (SASE). In this report, we highlight our independent field checks with over nine contacts (partners and industry analysts) with a view on the broader network security market as well as group calls with another nine checks (partners and customers) more specifically focused on NTSK's competitive standing. Most recently, the data points in our checks lead us to believe that the network security market is increasingly shifting towards SASE form factors. And throughout our work, NTSK frequently received positive commentary on its core Secure Service Edge (SSE capabilities) where it consistently shows up in short lists among large enterprise customers. In addition, we think the company has an opportunity to do well in tangential product categories such as SDWAN and Data Protection, which expands NTSK’s TAM by almost 60% as well as AI Security longerterm. Lastly, we like that NTSK is leaning into S&M investments with plans to increase quota-bearing sales headcount by 80% over the next three years. Initiate at Buy."

For an analyst ratings summary and ratings history on Netskope click here. For more ratings news on Netskope click here.

Shares of Netskope closed at $21.75 yesterday.

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