Wall Street Showers Netskope Stock With Buy Ratings

Shares in a cybersecurity company Netscope (NTSK) on Monday amid a wave of positive reviews released by Wall Street analysts. Netskope shares have fallen since its initial public offering.

At least a dozen Wall Street firms have launched Netskope stock with buy, outperform or overweight ratings.

On the stock market today, Netskope stock rose more than 5% to 22.98 in morning trading. As of market close on Friday, shares of the cybersecurity company had risen nearly 3% since its IPO on September 18. Shares reached a high of 27.99 on September 22 and then retreated.

William Blair analyst Jonathan Ho initiated coverage with an Outperform rating

“Legacy products, such as firewalls and virtual private networks (VPNs), are no longer sufficient to meet the needs of hybrid remote workers, shadow AI, data security, and zero trust initiatives,” Ho said in a report. “The Netskope platform solution allows customers to have a safer, better-performing, data-centric and modern network security capability.”

Netskope Stock: SASE Stock Winner

Netskope operates a cloud-based Secure Access Service Edge, or SASE, platform that supports remote workers and branch offices. Founded in 2012, Netskope competes Palo Alto Networks (Bano), Zscaler (ZS) and many more.

At BMO Capital Markets, analyst Keith Bachman initiated coverage of Netskope with an outperform rating. “We believe Netskope offers a leading SASE platform that provides effective visibility, contextual awareness, security and control of customer traffic,” he said in a report.

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In Netskope’s IPO, the cybersecurity company raised more than $900 million at a valuation of $7.3 billion.

“In addition to expansion momentum in new areas and the market, Netskope is benefiting from a stock turnaround at the expense of legacy network and security vendors that have not been able to innovate to keep up with the pace of change,” Brian Essex, an analyst at JP Morgan, said in a report.

According to Netskope’s regulatory filing, the company’s revenue increased 31% year over year to $328 million for the six months ended July 31. It had a net loss of $170 million, an improvement from a loss of $207 million the previous year.

Netskope focused on the financial services, healthcare, and federal government markets.

IBD’s group of cybersecurity stocks ranks No. 97 out of 197 groups tracked. Among the top performers in the cybersecurity group this year Cloudflare (NET),Zscaler,and CrowdStrike Holdings (Krod).

Follow Reinhardt Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.

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