Cowen cuts SentinelOne stock price target to $26, keeps Buy rating

On Thursday, TD Cowen’s analysts revised their outlook on SentinelOne Inc (NYNYSE:SE: S) shares, reducing the price target from $35.00 to $26.00 while still recommending the stock as a Buy. Currently trading at $18.73, with a market capitalization of $6 billion, the stock has declined about 31% over the past year. The adjustment follows the company’s latest financial guidance for fiscal year 2026, which fell short of Street estimates. This projection was influenced by a combination of factors, including a $10 million impact on the annual recurring revenue (ARR) due to a product sunset and various macroeconomic pressures. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt.

SentinelOne’s fourth-quarter results were robust, yet the forecast for fiscal year 2026 did not meet expectations. With a healthy gross profit margin of 74% and revenue growth of 34% in the last twelve months, the company shows promising operational metrics. The new CFO, delivering their first quarterly guidance, set a conservative tone for the upcoming year despite management’s optimistic remarks during the earnings call. In light of these developments, TD Cowen has recalibrated its expectations and price target, now valuing the company at 6 times its projected fiscal year 2027 revenues. InvestingPro data reveals that analysts expect the company to achieve profitability this year, with several additional insights available to subscribers.

The analyst, Shaul Eyal, provided commentary on the situation, noting that despite a strong year-end performance, the fiscal year 2026 outlook was adjusted downwards, leading to the revised estimates. Eyal emphasized the positive attitude of the management during the earnings call, which contrasted with the more cautious financial projections.

SentinelOne’s latest financial guidance indicates a strategic recalibration as the company faces a challenging macroeconomic environment and specific product-related headwinds. The lowered price target reflects these challenges while the maintained Buy rating suggests a continued belief in the company’s long-term potential.

Investors and market watchers will be observing how SentinelOne navigates the forecasted headwinds and whether the conservative guidance set by the new CFO will provide a stable foundation for the company’s performance in the coming fiscal year. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. For deeper insights into SentinelOne’s financial health, valuation metrics, and growth potential, subscribers can access the comprehensive Pro Research Report, part of the extensive analysis available for over 1,400 US stocks.

In other recent news, SentinelOne Inc has been the focus of several analyst reports following its fourth-quarter results. Bernstein SocGen Group adjusted its price target for SentinelOne, lowering it from $30 to $27, while maintaining an Outperform rating. This adjustment came as the company’s revenue exceeded guidance by 1.6%, but the annual recurring revenue (ARR) growth did not meet expectations. Similarly, DA Davidson cut its price target to $18 from $25 and maintained a Neutral rating, citing a slight shortfall in ARR compared to consensus estimates.

Piper Sandler also revised its price target downwards to $28 from $32, but continued to recommend an Overweight rating, highlighting the growth in SentinelOne’s $100K customer base and traction beyond endpoint security. Meanwhile, KeyBanc kept a Sector Weight rating, noting a minor ARR shortfall and a cautious outlook on net new ARR growth for fiscal year 2026 due to competitive challenges. Citi reduced its price target to $21 from $27, maintaining a Neutral rating, and pointed out mixed results with a modest revenue beat but a miss on free cash flow.

These recent developments reflect a mixed sentiment among analysts, with some maintaining positive ratings despite lowered price targets. The focus remains on SentinelOne’s revenue performance, customer growth, and the challenges in achieving its future ARR targets.

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