In a report released today, Tal Liani from Bank of America Securities maintained a Hold rating on SentinelOne, with a price target of $21.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tal Liani has given his Hold rating due to a combination of factors including SentinelOne’s strong annual recurring revenue (ARR) growth, which exceeded market expectations, and the positive momentum from new product offerings. Despite these positives, the company’s revenue growth and gross margin were only in line with market expectations, and its operating margin, although slightly better than expected due to cost management, remains a concern.
On the downside, the guidance for fiscal year 2026 was not particularly encouraging, with only a modest increase in revenue projections and a reduction in operating margin expectations. This cautious outlook, coupled with the company’s relatively low valuation, suggests a balanced risk-reward scenario, leading to the Hold rating. The company’s valuation, trading at approximately 4.5 times the estimated enterprise value to sales for 2026, provides some support for the stock, but the overall guidance and margin profile remain underwhelming.
In another report released today, Barclays also maintained a Hold rating on the stock with a $21.00 price target.