Wednesday, Oppenheimer initiated coverage on SentinelOne Inc (NYSE: S) shares with an Outperform rating and a set price target of $32.00, representing nearly 50% upside from the current price of $21.73.
The firm's analysts are optimistic about the company's prospects, highlighting a significantly improved leadership team, which has led to better operational execution and a transformation in sales and go-to-market strategies. According to InvestingPro data, 12 analysts have recently revised their earnings expectations upward, suggesting growing confidence in the company's direction.
SentinelOne, recognized for its security platform, has been experiencing rapid growth in non-endpoint market opportunities, with InvestingPro data showing impressive revenue growth of 34.38% over the last twelve months. The analysts believe these opportunities present valuable cross-selling and upselling potential, along with chances for market share gains.
Moreover, there is an anticipation for a substantial acceleration in Net New Annual Recurring Revenue (NNARR) as the company leverages the breadth of its platform and realigns its sales priorities. While currently not profitable, analysts tracked by InvestingPro predict the company will achieve profitability this fiscal year.
The analysts at Oppenheimer suggest that the investment community has yet to fully recognize the impact of SentinelOne's recent strategic adjustments and the inherent value of its platform.
They argue that as SentinelOne continues to demonstrate sustained performance and captures more market share, its valuation and multiples could see an uptick. In their projection, they see the potential for the company's valuation multiples to rise to 7.8 times, compared to CrowdStrike (NASDAQ:CRWD)'s current multiple of 14.9 times.
This positive outlook is based on the belief that the market has not fully appreciated the recent changes and performance improvements at SentinelOne. As evidence of these improvements becomes more apparent through reported results, Oppenheimer expects investor sentiment to shift, potentially leading to an increased valuation for the company's shares.
In other recent news, cybersecurity firm SentinelOne Inc has experienced a series of analyst rating adjustments. UBS downgraded the company's stock from Buy to Neutral due to a decline in investor confidence and waning optimism for growth factors in 2025, such as the partnership with Lenovo. The analysts also highlighted a risk to the consensus revenue estimates, which predict $214 million in net new annual recurring revenue (NNARR).
On the other hand, Cantor Fitzgerald assigned an Overweight rating to SentinelOne, setting a price target of $30. The firm highlighted the company's impressive revenue growth of 34.38% over the last twelve months and the strong demand for SentinelOne's endpoint detection and response (EDR) and extended detection and response (XDR) products.
Bernstein maintained an Outperform rating on SentinelOne's stock, despite lowering the price target to $30 from $32. The adjustment followed the company's fiscal third quarter 2025 results, which exceeded revenue expectations by a margin of $1.1 million. Meanwhile, KeyBanc maintained a Sector Weight rating on SentinelOne following a modest $3 million annual recurring revenue (ARR) beat and a slight guidance raise for its fiscal fourth quarter revenue.
Piper Sandler analysts released insights on the tech sector, revealing a strong outlook for IT spending, with SentinelOne likely to benefit from the prioritization of cloud and data security. These are the recent developments for SentinelOne Inc. (NYSE:S)
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