Analysts at Citi opened a 90-day downside catalyst watch on SentinelOne , Inc. (NYSE:S), a 30-day downside catalyst watch on Fortinet (NASDAQ:FTNT), and a 90-day upside catalyst watch on CyberArk Software (NASDAQ:CYBR) in separate notes Tuesday. Meanwhile, analysts at Morgan Stanley upgraded Tenable Holdings, Inc. (NASDAQ:TENB) and CrowdStrike Holdings Inc. (NASDAQ:CRWD) to Overweight and downgraded CYBR to Equal Weight.
Focusing on CYBR, analysts at Citi said its model recovery after a successful transition alongside a favorable demand environment boosts their confidence in the company's ARR setup "beatability" for its next earnings release. According to the bank, this acts as the catalyst for potential upside over the next 90 days.
On the other hand, analysts at Morgan Stanley downgraded CYBR and cut the price target to $195 from $240, saying there is limited upside to ARR and FCF forecasts exiting their subscription transition. In addition, they believe the company's near-term growth could disappoint compared to expectations.
Meanwhile, analysts at Citi see SentinelOne moving lower over the next 90 days post its upcoming earnings release based on lower upside to results and guidance. "Our view is supported by our recent fieldwork/conversations with VARs and partners, which comes neither compelling (no signals to support hypergrowth or significantly positive anecdotes) nor concerning (can continue to co-exist and compete with CRWD, MSFT) and may fall short of consensus' expectations for concurrent 30% ARR growth with ~30pts of margin expansion through CY25 (FY26)," said the bank.
For Fortinet, analysts at Citi see the stock moving lower following its upcoming Q23/CY23E earnings. This is due to the potential for limited upside to results and further risk to CY24E guidance from an already disappointing and guided down early views on billings.
Back to Morgan Stanley, the firm said Tenable is a category leader and top share gainer within Vulnerability Management. They lifted the price target for the stock to $60 from $46, stating that they see value in "TENB trading at a material discount to peers and a clear catalyst in margin upside driving the stock higher."
For CrowdStrike, the bank raised the price target to $304 from $203. They see an "improving demand outlook for CRWD as accelerating cyberattacks, multiple new products, and GenAI tailwinds drive estimates upside."