Netskope Shares Fall 19% as Brokers Slash Targets by Up to $6
NTSK•Netskope shares tumbled 19% as eight brokerages cut price targets, including Morgan Stanley to $14 and TD Cowen to $19, after a Q1 earnings beat but cautious outlook. Analysts still forecast 5–53% upside despite in-line Q2 revenue guidance of $213M–$215M and full-year outlook of $879M–$883M.
1. Price Target Cuts Trigger 19% Drop
Shares of Netskope tumbled 19% as eight brokerages reduced their price targets. Morgan Stanley lowered its target to $14 from $18, TD Cowen to $19 from $25, RBC and BMO to $13 from $14, Oppenheimer to $16 from $19, Mizuho to $13 from $15, BTIG to $14 from $17, Baird to $16 from $20 and Piper Sandler to $18 from $21, reflecting concerns over slowing net-new ARR growth and mixed outlook.
2. Guidance and Analyst Upside
The company forecast Q2 revenue of $213M–$215M and full-year revenue of $879M–$883M, matching previous estimates. Despite cautious guidance and CFO departure concerns, analysts still see upside: conservative $13 targets imply about 5% upside while a $19 target suggests up to 53% gains, underscoring long-term confidence in AI-driven security growth.
