Baird has maintained an Outperform rating on SentinelOne Inc (NYNYSE:SE: S) and raised the stock's price target to $29.00 from the previous $25.00.
The cybersecurity firm is anticipated to report its earnings tomorrow, following Baird's initiation of the stock at an Outperform rating last month. The firm's stance remains positive despite concerns among investors regarding competitive pressures and scalability issues.
SentinelOne is expected to face mixed top-line comparisons, with the current quarter presenting the easiest annual recurring revenue (ARR) comparisons and more challenging revenue comparisons. However, Baird predicts a top-line beat for SentinelOne, bolstered by strong channel survey results and positive feedback from the field.
The recent improvement in market sentiment towards SentinelOne echoes the findings from investor meetings on the East Coast and mid-west. Baird highlights the company's positive pipeline momentum, enhanced go-to-market strategies, growing federal opportunities and partnerships, and expanding margins.
In other recent news, SentinelOne reported a 40% year-over-year revenue increase, reaching $186.3 million. However, the company's annual recurring revenue (ARR) did not meet its own guidance, leading to a price target reduction by Canaccord Genuity, Needham, and Scotiabank.
Despite the ARR shortfall, Canaccord Genuity upgraded SentinelOne shares from "Hold" to "Buy". SentinelOne also announced an enhanced collaboration with Google (NASDAQ:GOOGL) Cloud to fortify enterprise cyber defenses and launched its new Singularity MDR and Singularity MDR + DFIR services.
Following an outage at competitor CrowdStrike (NASDAQ:CRWD), BTIG suggested SentinelOne could capture more market share in upcoming quarters. Jefferies increased its price target for SentinelOne to $24.00, forecasting the company's ARR to reach approximately $803 million, marking a 31% year-over-year growth. Wells Fargo (NYSE:WFC) upgraded its rating for SentinelOne to Overweight and raised its price target to $29.00, citing potential market share gains and profit potential.
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