In a report released yesterday, Kingsley Crane from Canaccord Genuity maintained a Buy rating on SentinelOne, with a price target of $26.00.
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Kingsley Crane has given his Buy rating due to a combination of factors that highlight SentinelOne’s strong performance and growth potential. The company has demonstrated impressive net-new Annual Recurring Revenue (ARR) in the second quarter, reaching $53 million and surpassing the $1 billion ARR milestone for the first time. This achievement indicates that the company’s growth model is not just aspirational but attainable, despite previous cautious guidance.
Additionally, SentinelOne’s strategic acquisition of Prompt Security for $180 million is expected to enhance its AI capabilities and accelerate its expansion into securing generative AI applications. With approximately 50% of quarterly bookings coming from emerging products, the company is diversifying beyond endpoint security into high-growth areas like cloud security and identity protection. This diversification, coupled with strong operational leverage and profitability on a free cash flow basis, supports the Buy rating. The price target of $26 is based on a valuation of approximately 7x enterprise value to sales, which is considered justified given the company’s growth prospects and remains below peer averages.
According to TipRanks, Crane is a 3-star analyst with an average return of 4.4% and a 48.36% success rate. Crane covers the Technology sector, focusing on stocks such as Alarum Technologies, CrowdStrike Holdings, and BlackBerry.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $28.00 price target.