Needham analyst Matt Dezort maintained a Buy rating on SentinelOne (S – Research Report) today and set a price target of $23.00.
Matt Dezort has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for SentinelOne. Despite the company’s mixed financial results and guidance that did not meet investor expectations, Dezort notes that SentinelOne achieved its goal of accelerating new business in the second half of the fiscal year, which contributed to a 27% year-over-year growth in total annual recurring revenue (ARR) to $920.1 million. Although this slightly missed consensus estimates, the company demonstrated strong demand trends and platform adoption, particularly in emerging solutions such as Cloud, AI, and SIEM, which accounted for more than half of the new bookings in FY25.
Furthermore, Dezort points out that while the revenue guidance for FY1Q and FY26 was below Street expectations, SentinelOne’s management remains optimistic about the future. The company anticipates approximately $200 million in net new ARR for FY26, leading to an estimated $1.12 billion in ARR, representing a 22% year-over-year increase. Despite the initial impact of retiring the legacy Deception solution, Dezort believes that new business will regain momentum in the second half of FY26. However, he acknowledges that investor skepticism persists, particularly regarding the anticipated ARR and revenue growth amid increasing macroeconomic uncertainty.
In another report released today, Bernstein also maintained a Buy rating on the stock with a $27.00 price target.
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