Morgan Stanley Starts Netskope (NTSK) at Overweight

Morgan Stanley analyst Meta Marshall initiates coverage on Netskope (NASDAQ: NTSK) with a Overweight rating and a price target of $27.00.

The analyst comments: "We believe NTSK has the potential to grow 25-30% consistently in the coming years as they capitalize on the growth of the $15bn secure access service edge (SASE) market and the $16bn AI security market. We think this growth is possible given the following: 1) Core markets served have attractive growth, with Gartner estimating the SASE market is growing at 24% and we estimate the AI security market is growing 30-40% in coming years. 2) Netskope repeatedly comes up in checks as a best-in-class platform in a best-in-class space. While we believe in platformization, as noted in our assumption note, our checks point to SASE still largely being a best-in-class product decision today. 3) Company is expanding its platform, creating a path for multi-year growth with existing customers. Netskope currently has 20+ products, is releasing 2+ a year, and has seen improving momentum with up/cross-selling of the broader platform, as net retention (NRR) increased to 118% in F2Q26, up from 113% in FY25. 4) The company is stepping up sales investments. As the company has stepped up sales investments in the last year, Netskope has already seen strong momentum in Americas in the past few quarters, as YoY ARR growth from Americas accelerated to 35% YoY in F2Q26, from 22% only one year prior."

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 $21.96 yesterday.

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