Piper downgrades SentinelOne on management changes, lack of catalysts

As previously reported, Piper Sandler downgraded SentinelOne (S) to Neutral from Overweight with a price target of $17, down from $20. While the current valuation of about 3-times EV/2027 revenue appears extremely modest on the surface, the firm believes recent management changes, a lack of near-term catalysts and disappointing recent results make other names more compelling in its coverage. Piper remains positive on the technology platform SentinelOne has built and acknowledges that more could likely go right than can go wrong at the current valuation – but with no impending catalyst to slow or reverse deceleration, the firm is moving to the sidelines.