Joseph Gallo, an analyst from Jefferies, maintained the Hold rating on SentinelOne (S – Research Report). The associated price target is $28.00.
Joseph Gallo has given his Hold rating due to a combination of factors which include SentinelOne’s performance and market positioning. He notes that while the company’s Annual Recurring Revenue (ARR) grew by 39% year-over-year, this was only slightly above expectations, hinting at a steady, yet not exceptional, top-line growth rate. Furthermore, Gallo points out that the fiscal year 2025 revenue guidance from SentinelOne is achievable but not exceeding consensus, indicating a cautious optimism about the company’s future revenue streams.
In addition, Gallo acknowledges that recent mergers and acquisitions by SentinelOne are affecting the company’s operating margin, which missed consensus forecasts, although he believes that the long-term trajectory remains positive. He also mentions SentinelOne’s success with large deals, as reflected by the 47% year-over-year growth in Remaining Performance Obligations (RPO), which outpaced the ARR growth. Despite these positive aspects, Gallo suggests that SentinelOne’s current after-hours trading valuation at 9 times the CY24 earnings is fair when compared to competitors such as Microsoft and CrowdStrike, thus justifying the Hold rating with a price target of $28.
In another report released on March 12, Barclays also assigned a Hold rating to the stock with a $27.00 price target.
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Based on the recent corporate insider activity of 106 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of S in relation to earlier this year.
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SentinelOne (S) Company Description:
SentinelOne Inc is an autonomous cybersecurity platform. The company’s cybersecurity solutions encompass AI-powered prevention, detection, response, and hunting across endpoints, containers, cloud workloads, and IoT devices in a single autonomous XDR platform.
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