SentinelOne acquisition boosts AI offering, says Jefferies

Jefferies analyst Joseph Gallo believes SentinelOne’s (S) acquisition of Prompt Security bolsters the company’s artificial intelligence offering. This deal is sizable for SentinelOne as it represents 4%-5% of current enterprise value and is unlikely to provide material annual recurring revenue given Prompt is just two years old, the analyst tells investors in a research note. Jefferies views AI as a “must win category in cyber.” It keeps a Buy rating on SentinelOne with a $23 price target The stock in midday trading is down 4% to $17.70.