SentinelOne: Stabilized Trends and Strategic Initiatives Signal Potential Recovery and Growth

Analyst Gray Powell from BTIG maintained a Buy rating on SentinelOne (S – Research Report) and decreased the price target to $21.00 from $27.00.

Gray Powell’s rating is based on several key factors. Despite a disappointing first quarter performance and a reduced revenue outlook, SentinelOne’s management has indicated that trends have stabilized and expects significant sequential growth in the upcoming quarter. This suggests potential for recovery and improved performance in the near term.
Additionally, the company’s new products, such as Data and Purple AI, are gaining traction, with Data & AI showing a 40% increase in annual recurring revenue over nine months. The momentum of Purple AI is also noteworthy, with substantial growth in bookings. Furthermore, SentinelOne’s strategic asset value and the attractive risk-reward profile at its current valuation support the Buy rating. The company’s decision to initiate a $200 million share buyback also reflects confidence in its future prospects.

Powell covers the Technology sector, focusing on stocks such as Zscaler, Okta, and CrowdStrike Holdings. According to TipRanks, Powell has an average return of 10.4% and a 57.19% success rate on recommended stocks.