Netskope Inc (NASDAQ:NTSK) shares climbed 8.8% on Wednesday following the initiation of coverage by FBN Securities analyst Shebly Seyrafi, who assigned an Outperform rating and a $15.00 price target.
Seyrafi wrote in the initiation note, "We are initiating coverage of Netskope (NTSK) with an Outperform rating and $15PT. NTSK, with its historical strength in the CASB (cloud access security broker) market, is a leading SASE company that sits at the intersection of security, networking, cloud, and AI. Our CQ4 2025 channel checks on NTSK were quite positive (more so than in CQ3)."
On the same day, Netskope announced the launch of NewEdge AI Fast Path, a suite of capabilities designed to improve network routing to AI applications hosted in public, private, or neo-cloud environments. The company said these capabilities are available now to Netskope customers.
Netskope cited a recent survey in which only 18% of infrastructure and operations leaders said they feel confident their current teams and budgets can satisfy the performance, resilience, and security needs of the AI era. The NewEdge AI Fast Path is positioned to address those gaps by reducing latency and costs while optimizing performance for teams deploying AI applications.
The new functionality builds on Netskope NewEdge, the carrier-grade private cloud that underpins the Netskope One platform. Netskope reported it maintains a global footprint of more than 120 data centers across more than 75 regions worldwide.
In describing its network scale, the company said its infrastructure includes more than 11,000 network adjacencies to over 750 unique autonomous system numbers. Those connections encompass major cloud providers and AI vendors, including Amazon Web Services, Microsoft, Google, Anthropic, and OpenAI.
Netskope is scheduled to release its fourth quarter fiscal 2026 results on March 11, 2026, after the market close.
Summary of the market reaction and product update:
- The stock move followed an analyst coverage initiation and a $15.00 price target from FBN Securities.
- Netskope launched NewEdge AI Fast Path to improve performance and cost efficiency for AI application traffic across cloud types.
- The company emphasizes its global network footprint and existing connections to major cloud and AI providers as part of the solution delivery.
Notes on timing and upcoming events:
- Netskope plans to report fourth quarter fiscal 2026 results on March 11, 2026, after markets close.