10:56 AM EDT, 03/12/2026 (MT Newswires) -- Netskope's ( NTSK ) differentiated network footprint is likely to help capture an outsized share in the secure access service edge market, but it is facing a slump in net new annual recurring revenue and net retention rate due to tough comparables, Morgan Stanley said in a Thursday research report.

The brokerage said it is paring down its ARR and NNARR expectations as tough comps are likely to persist in H1.

The company is showing margin discipline as well as capitalizing on the artificial intelligence opportunity by launching new AI products, Morgan Stanley said. It is also using AI to expedite development pipelines, the firm said.

The brokerage said it reiterated its overweight rating on the stock and cut its price target to $18 per share from $27.

Price: 9.15, Change: -2.98, Percent Change: -24.58