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Investing.com - Cantor Fitzgerald has reiterated an Overweight rating on SentinelOne Inc (NYSE:S) with a price target of $24.00, maintaining its positive outlook on the cybersecurity firm. According to InvestingPro data, the company maintains a FAIR financial health score, with analysts setting targets ranging from $17 to $36 per share.
The research firm noted that SentinelOne stock recently jumped on acquisition rumors, though shares have since retreated from those highs. SentinelOne has long been considered a potential acquisition target, with Cantor Fitzgerald suggesting the company would benefit from a sale. The company’s strong balance sheet, with more cash than debt, makes it an attractive target according to InvestingPro analysis.
Cantor Fitzgerald identified potential buyers including Google Cloud (NASDAQ:GOOGL), Cisco (NASDAQ:CSCO), or IBM (NYSE:IBM), noting that SentinelOne’s endpoint capabilities could enhance the AI and EDR portfolios of these larger technology companies.
The research firm pointed to SentinelOne’s inconsistent execution as evidence of go-to-market leadership challenges and difficulties in attracting and retaining top sales talent compared to competitors like CrowdStrike (NASDAQ:CRWD) and Palo Alto Networks (NASDAQ:PANW).
While Cantor Fitzgerald does not expect a near-term transaction, it highlighted that SentinelOne currently trades at approximately 5x FY26E EV/Sales compared to peers at roughly 14x FY26E EV/Sales, suggesting the stock is trading at a discount to the value of its underlying technology. InvestingPro analysis indicates the stock is currently undervalued, with strong revenue growth of 28% and analysts projecting profitability this year. Get access to 12 more exclusive InvestingPro Tips and comprehensive valuation metrics with an InvestingPro subscription.
In other recent news, SentinelOne announced that its AI security solutions are now available in the AWS Marketplace. This move allows AWS customers to easily purchase and deploy SentinelOne’s AI-powered security platform, enhancing the procurement process. Additionally, SentinelOne has partnered with AWS on a new Security Hub integration, providing a consolidated view of security status for organizations. The company has also joined the AWS Independent (LON:IOG) Software (ETR:SOWGn) Vendor Workload Migration Program to support workload migrations for customers using AWS.
In a separate development, SentinelOne and Abstract Security have entered a partnership to integrate their technologies, aiming to improve threat detection and response capabilities. This collaboration is expected to reduce alert fatigue by filtering and normalizing security data. Furthermore, Rosenblatt Securities initiated coverage on SentinelOne with a Buy rating and a price target of $24. The firm highlighted that SentinelOne is trading at a significant discount compared to its peers, emphasizing its leadership in AI-driven cybersecurity.
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