Buy Rating for SentinelOne: Strong Market Position and Growth Potential Amid Conservative Guidance

Analyst Tal Liani of Bank of America Securities reiterated a Buy rating on SentinelOne (S – Research Report), with a price target of $24.00.

Tal Liani has given his Buy rating due to a combination of factors including SentinelOne’s strong market position and potential for upside despite conservative guidance. The company reported a revenue growth of 29.5%, which exceeded expectations, and an EPS that surpassed the Street’s forecast, primarily due to lower operational expenses. Although the revenue guidance was weaker than anticipated, management has reset expectations for the year, which could lead to in-line or better results.
Furthermore, SentinelOne is experiencing increased adoption of its non-endpoint modules, which now make up half of its bookings. This diversification, along with recent mergers and acquisitions, could enhance the net retention rate over time. Despite the company’s current lower profitability compared to peers, its valuation remains attractive at approximately 4.5 times 2026 EV/Sales, which is significantly lower than the peer average, suggesting potential for future growth.

Liani covers the Technology sector, focusing on stocks such as Cisco Systems, Ciena, and Palo Alto Networks. According to TipRanks, Liani has an average return of 9.1% and a 55.11% success rate on recommended stocks.

In another report released today, Bernstein also maintained a Buy rating on the stock with a $27.00 price target.