Netskope (NTSK) saw solid demand in its fiscal Q3 ended October, with sales representatives and channel partners active through the final days of the quarter, Oppenheimer said Thursday in a report.

Channel checks pointed to heightened discounting against Zscaler (ZS) and Palo Alto Networks (PANW) in October that normalized in early November, the report said.

Consensus annual recurring revenue expectations imply a more-than 28% decline in net new ARR and historically low revenue conversion, leaving potential upside of $5 million to $10 million in ARR and about $3 million to $5 million in revenue, Oppenheimer noted. The firm said investors should monitor North America hiring, representatives' productivity, and Netskope's transition to annual billings.

Oppenheimer maintained an outperform rating on Netskope with a $28 price target.

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