JPMorgan downgraded SentinelOne (S) to Neutral from Overweight with a price target of $19, down from $22. SentinelOne’s third annual recurring revenue miss in five quarters likely translates into a longer recovery as the company works to rebuild investor confidence, the analyst tells investors in a research note. The firm says that after having disappointed last quarter, the company missed its own ARR guidance this quarter, guided Q2 revenue below consensus, and cut its full-year growth outlook. In addition, management commentary implied that SentinelOne may be more sensitive to macro headwinds than peers due to greater reliance on new logos for growth, contends JPMorgan. The firm reduced estimates and now sees better opportunities elsewhere within its coverage universe.
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- SentinelOne price target lowered to $19 from $21 at Barclays
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