CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our target price to $235 from $240, based on an EV/S multiple of 23x our 2027 sales projection of $3.57 billion, above its three-year average. We increase our 2026 EPS projection to $1.20 from $1.12 and revise our 2027 EPS view to $1.50 from $1.43. NET reported Q1 revenue of $639.8M, up 34% Y/Y, attributed to strength in large customers. Notably, the company added as many $5M+ customers in Q1 as in all of 2025, while customers spending $100K+ accelerated 25% Y/Y to 4,416. Gross margin compressed to 72.8%, down 210 bps sequentially, though non-GAAP operating margin fell 30 bps by comparison to 11.4%. NET raised its operating margin outlook, signaling continued leverage in the business. The major restructuring program announced during the quarter will help with margin stability as NET increases growth investments, but elevates execution risk, in our view. Still, we believe the firm is executing well against its opportunity, with strong momentum reported in the business.