Investing.com -- TD Cowen says SentinelOne Inc (NYSE:S) Inc is set to disrupt the $7 billion legacy antivirus market and deliver a strong growth in revenue for fiscal year 2026, as it maintained its ‘buy’ rating on the stock with a target price of $35.
The cybersecurity firm, recognized as a leader in Gartner (NYSE:IT)'s Magic Quadrant for Endpoint Detection and Response (EDR) and a strong performer in MITRE ATT&CK evaluations, is well-positioned to expand its market share, the note said.
Key growth drivers include rising win rates, positive new logo momentum, and increasing customer spending, which TD Cowen called an "exciting cocktail" for SentinelOne's growth trajectory.
The brokerage expects the company’s upcoming FY26 revenue outlook, as well as guidance for the first quarter of FY26, to act as pivotal catalysts.
While the company recently partnered with Lenovo, the world’s largest PC maker, TD Cowen noted that the collaboration is unlikely to have a significant near-term financial impact. However, the deal is expected to bolster SentinelOne's branding and visibility in the medium term.
TD Cowen values SentinelOne at 10 times its FY26 estimated revenue, corresponding to its $35 price target. This implies a 40% upside from its current trading multiple of 7 times FY26 revenue, a steep discount compared to its cybersecurity peers.
However, the firm cautioned that if SentinelOne cannot capitalize on CrowdStrike (NASDAQ:CRWD)'s July outage or if FY26 revenue guidance falls short, its shares could remain under pressure.
“SentinelOne valuation would then reflect rekindled LT growth concerns as sentiment goes back into "show-me" mode,” note added.