Benzinga - by Lekha Gupta, Benzinga Editor.
Analysts raised the price target of SentinelOne Inc (NYSE: S) following upbeat Q3 FY23 results reported yesterday.
The company posted revenue of $164.16 million, beating the estimates of $156.09 million, and adjusted EPS of $(0.03), exceeding the $(0.08) estimate.
SentinelOne sees fourth-quarter revenue of approximately $169 million versus estimates of $166.46 million. The company also raised its full-year revenue guidance from $605 million to $616 million versus estimates of $605.66 million.
Raymond James analyst Adam Tindle raised the price target to $26 from $22 and maintained a price target of Strong Buy.
The analyst expects growth momentum to continue with AI product rolling out in Q1 and significant acceleration in new growth markets (triple-digit growth in Cloud and Data; now 20% of bookings), offering expansion opportunities while the core endpoint market persists in improvement.
Tindle raised adjusted EPS estimates to $(0.30) from $(0.39) for FY24 and $(0.01) from $(0.03) for FY25.
Needham analyst Alex Henderson boosted the price target to $26 from $23 with a Buy rating.
The analyst says Sentinel still has a way to go to deliver profitability, but the positive Free Cash Flow target in H1FY24/FY25 looks achievable.
The analyst expects the new products and ongoing managed services to deliver a robust business pipeline with an upsell likely 5x-6x per dollar of consulting revenues.
Henderson increased adjusted EPS estimates to $(0.30) from $(0.38) for FY24 and $0.06 from $(0.04) for FY25.
Also, William Blair analyst Jonathan Ho says SentinelOne can drive a healthy mix of new customer additions and existing customer expansion and deliver very strong operating leverage amid a challenging environment.
The analyst estimates EPS of $(0.30) for FY24 and $0.08 for FY25.
Moreover, Morgan Stanley boosted the price target to $25 from $20 and reiterated the Overweight rating.
JMP Securities increased the price target to $33 from $22 and reiterated a Market Outperform rating.
Price Action: S shares are up 17.5% at $23.51 on the last check Wednesday.
Latest Ratings for S
| Mar 2022 | Barclays | Maintains | Overweight | |
| Feb 2022 | DA Davidson | Initiates Coverage On | Buy | |
| Jan 2022 | Wolfe Research | Initiates Coverage On | Outperform |
View the Latest Analyst Ratings
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