Morgan Stanley analyst Keith Weiss has maintained their neutral stance on S stock, giving a Hold rating today.
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Keith Weiss has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing challenges for SentinelOne. The company reported a strong fiscal second quarter, with annual recurring revenue (ARR) exceeding expectations, which was a significant improvement from the previous quarter. This was driven by a broader adoption of their platform, particularly in AI security, and the successful introduction of their Flex pricing model, which made their products more accessible.
However, despite these positive signs, Weiss remains cautious due to the competitive pressures in the endpoint detection and response (EDR) market and the limited profitability pass-through. While the company has shown stronger demand conditions and promising growth in emerging products, the competitive environment and profitability concerns warrant a more conservative approach. As a result, the Hold rating reflects a balanced view, acknowledging the potential for growth while remaining mindful of the challenges ahead.
According to TipRanks, Weiss is a 5-star analyst with an average return of 12.8% and a 63.89% success rate. Weiss covers the Technology sector, focusing on stocks such as Microsoft, Salesforce, and CrowdStrike Holdings.