02:28 PM EDT, 10/13/2025 (MT Newswires) -- Netskope ( NTSK ) is an "attractive" investment opportunity in modern network security architectures, Morgan Stanley said in a Monday note initiating coverage of the company's stock.

The company has the potential to sustain 25% to 30% in revenue growth in the coming years as it capitalizes on the $15 billion secure access service edge market and the $16 billion artificial intelligence security market, which are forecasted to grow 24% and 30% to 40%, respectively, Morgan Stanley analysts said.

Netskope ( NTSK ) has created a multi-year growth path with existing customers by expanding its platform, releasing more than two products a year, even as net retention rate increased to 118% in its fiscal Q2, the analysts added.

Netskope ( NTSK ) differentiates itself in the space with its Netskope One platform which is a combination of more granular inspection architecture and a global private cloud called NewEdge Network, according to the note. Having completed the bulk of investing in its platform, the company is now poised to generate "meaningful operating leverage," the note said.

The company's stock should reach Morgan Stanley's price target of $27 as it reaches growth of 25% to 30%, with the latter figure putting it in "rarefied air" within cybersecurity, the analysts said.

Morgan Stanley initiated coverage of the company's stock at overweight with a price target of $27.

Price: 23.26, Change: +1.51, Percent Change: +6.96