Analyst Michael Walkley of Canaccord Genuity maintained a Hold rating on SentinelOne (S – Research Report), with a price target of $28.00.
Michael Walkley has given his Hold rating due to a combination of factors related to SentinelOne’s performance and future outlook. While SentinelOne displayed robust growth with a 39% year-over-year increase in Annual Recurring Revenue (ARR) and a total revenue growth of 38%, this was only slightly ahead of expectations. The company’s guidance for both the first quarter and the fiscal year 2025 indicates a steady but not exceptional growth trajectory, aligning closely with existing market estimates. Despite the strong performance, the guidance provided suggests a continuation of the current growth rate rather than a significant acceleration, which may limit the stock’s near-term upside potential.
Moreover, the company is making positive strides toward profitability, highlighted by a notable improvement in non-GAAP gross margins and a consistent reduction in operating losses over consecutive quarters. SentinelOne’s operational efficiency is on the rise, with its non-GAAP operating margin seeing a substantial year-over-year increase and the company projecting positive free cash flow and operating profits by the end of fiscal year 2025. However, due to the largely in-line financial projections and the incorporation of expenses from recent acquisitions, the Hold rating suggests that the current stock price may adequately reflect the company’s expected performance and future prospects.
According to TipRanks, Walkley is a 5-star analyst with an average return of 16.2% and a 58.52% success rate. Walkley covers the Technology sector, focusing on stocks such as IMPINJ, Digi International, and Powerfleet.
In another report released today, Wells Fargo also assigned a Hold rating to the stock with a $26.00 price target.
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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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