SentinelOne (S – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Gray Powell from BTIG reiterated a Buy rating on the stock and has a $27.00 price target.
Gray Powell has given his Buy rating due to a combination of factors that highlight SentinelOne’s potential for growth despite recent volatility. SentinelOne’s fiscal fourth-quarter results were in line with expectations, with net new annual recurring revenue (ARR) additions meeting the analyst’s estimates. Although there was some disappointment due to the impact of the Deception product discontinuation, the overall ARR growth is expected to return to positive territory, with a projected 5% year-over-year increase in fiscal year 2026.
Furthermore, SentinelOne’s new products outside its core security offerings are gaining traction, contributing significantly to bookings. The company’s free cash flow profile is improving rapidly, and its fiscal year 2026 guidance appears conservative, suggesting potential upside. With the stock trading at a lower valuation compared to typical security companies, Powell sees a favorable risk-reward scenario, reinforcing his Buy recommendation.