Analyst Mike Cikos of Needham maintained a Buy rating on SentinelOne, with a price target of $23.00.
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Mike Cikos has given his Buy rating due to a combination of factors including SentinelOne’s impressive performance in the second quarter, where the company achieved a record Net-New ARR with a sequential growth rate of 90%. This growth significantly exceeded the previous expectations of approximately 32% quarter-over-quarter. The company’s success was driven by strong contributions from new customer acquisitions, existing customer expansions, and emerging products, which made up around half of the quarterly bookings.
Additionally, within the emerging products category, the data segment continues to expand robustly, and the Purple AI product saw a notable attachment rate to licenses sold during the quarter. Despite a $16 million increase in ARR for the second quarter of fiscal year 2026, the management has cautiously adjusted the revenue guidance for FY26 by $1.5 million at the midpoint to reflect the growing number of large deals in the pipeline that have less visibility to close. This prudent approach, combined with the company’s strong performance, supports the Buy rating and an increased price target of $23.
In another report released today, Jefferies also maintained a Buy rating on the stock with a $25.00 price target.