Wednesday, January 8, 2025 - SentinelOne Inc (NYNYSE:SE: S) has received an Overweight rating from Cantor Fitzgerald, with the research firm setting a price target for the cybersecurity company's shares at $30.00. The new coverage by Cantor Fitzgerald highlights SentinelOne's potential despite its shares underperforming compared to its competitors over the last year.
In the past year, SentinelOne's stock has seen a 5.0% decrease in value, while its competitors averaged a 22.6% increase. Despite this, Cantor Fitzgerald sees a positive outlook for the company, citing its expanding market share and impressive Annual Recurring Revenue (ARR) growth. The firm also notes the strong demand for SentinelOne's endpoint detection and response (EDR) and extended detection and response (XDR) products.
Cantor Fitzgerald believes that SentinelOne's unique system architecture differentiates it from other market players, such as CrowdStrike (NASDAQ:CRWD), and positions it to capitalize on recent market opportunities. The analyst's commentary pointed out that the investment community has been undervaluing SentinelOne by comparing it unfavorably to its larger peer.
The research firm is optimistic about SentinelOne's trajectory, mentioning its continued investment in emerging solutions like Purple AI, Cloud Native Security, and Singularity Data Lake. Additionally, a recent partnership with Lenovo and improvements in both direct and indirect sales execution are expected to contribute to the company's sustainable growth.
The $30 price target set by Cantor Fitzgerald is based on an 8.6x multiple of SentinelOne's projected FY26 Enterprise Value to Sales (EV/Sales). This valuation reflects confidence in the company's future performance and market position.
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