SentinelOne (S – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Peter Weed from Bernstein maintained a Buy rating on the stock and has a $25.00 price target.
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Peter Weed has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for SentinelOne. Despite facing macroeconomic difficulties in April that affected new customer acquisitions, the company managed to close most of the deals that were initially delayed. This resilience is reflected in the consistent expansion among existing customers, as evidenced by stable net revenue retention rates, even after adjusting for the Deception product’s end-of-life.
Additionally, SentinelOne’s guidance suggests an increase in annual recurring revenue (ARR) additions, which is a positive indicator of future growth. While there are potential risks, such as the economic impact on government-related revenues, the company’s strategic investments in sales and marketing to target larger enterprise customers are expected to pay off. The valuation, based on a balanced approach using a price-to-revenue multiple and a discounted cash flow model, supports a price target of $25, reinforcing the Outperform rating.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $24.00 price target.
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