Netskope shares plunged nearly 19% on June 4 after major brokerages slashed price targets, with Morgan Stanley cutting to $14 from $18 and RBC Capital and BMO Capital trimming to $13 from $14. Despite Q1 results beating estimates, the company guided Q2 revenue at $213M–$215M and full-year revenue at $879M–$883M in line with consensus, leaving investors underwhelmed.
Shares of Netskope tumbled nearly 19% on June 4 after major brokerages slashed price targets, with Morgan Stanley reducing its target to $14 from $18 and RBC Capital and BMO Capital both trimming to $13 from $14. Oppenheimer cut to $16 from $19, Mizuho to $13 from $15, and Piper Sandler to $18 from $21, reflecting a broad reassessment of near-term ARR growth projections.
Most analysts retained buy ratings and signaled upside potential, with Rosenblatt’s $15 target implying about 21% potential gain, Oppenheimer’s $16 target suggesting 29% upside, Piper Sandler’s $18 target pointing to 45% upside and TD Cowen’s $19 target implying 53% potential. Even the more conservative $13 targets from RBC Capital, BMO Capital and Mizuho imply roughly 5% upside, indicating sustained bullish sentiment despite execution concerns.
Netskope reported Q1 results that topped revenue and earnings estimates but guided Q2 revenue of $213M–$215M and full-year revenue of $879M–$883M in line with consensus forecasts. The lack of a meaningful guidance raise and signs of ARR deceleration left investors seeking stronger growth signals.
