SentinelOne: Balancing Growth and Profitability Amidst Macroeconomic Challenges – A Hold Rating by Keith Weiss

In a report released today, Keith Weiss from Morgan Stanley maintained a Hold rating on SentinelOne (S – Research Report), with a price target of $18.00.

Keith Weiss’s rating is based on a combination of factors that reflect both challenges and opportunities for SentinelOne. The company reported mixed results for the first quarter, with annual recurring revenue (ARR) falling short of expectations due to macroeconomic challenges and deal slippage. Despite this, SentinelOne’s operating margin and free cash flow exceeded expectations, showcasing a balance between growth and profitability.
However, the outlook for the fiscal year 2026 was slightly lowered, reflecting ongoing macroeconomic uncertainties. While there were positive trends, such as improved customer spending behaviors and strong adoption of emerging products, the missed expectations in net new ARR and the revised revenue guidance contributed to the Hold rating. These mixed signals, with both positive operational performance and challenges in revenue growth, led to a cautious stance by Keith Weiss.

In another report released today, Barclays also maintained a Hold rating on the stock with a $19.00 price target.

Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of S in relation to earlier this year.