DA Davidson raises SentinelOne stock price target to $19 on strong ARR

Published 29/08/2025, 14:20
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Investing.com - DA Davidson has raised its price target on SentinelOne Inc (NYSE:S) to $19.00 from $17.00 while maintaining a Neutral rating on the cybersecurity company’s stock. According to InvestingPro data, the company currently trades at $17.61, with analyst targets ranging from $18 to $30, suggesting potential upside.

The price target increase follows SentinelOne’s quarterly results, which showed Annual Recurring Revenue (ARR) of $1.001 billion, exceeding consensus estimates of $985 million and representing 24% year-over-year growth. This aligns with the company’s strong revenue growth of 25.4% over the last twelve months, while maintaining a healthy gross profit margin of 75%.

Net New ARR (NNARR) reached $53 million, showing 21% year-over-year growth compared to a 13% year-over-year decline in the previous quarter, demonstrating a significant improvement in new business acquisition.

Despite the strong performance metrics, SentinelOne raised its fiscal year 2026 revenue guidance by only $1.5 million at the midpoint, with management citing a prudent approach regarding macroeconomic conditions and deal timing uncertainties.

The company also lowered its operating margin outlook by approximately 50 basis points at the midpoint, which management attributed to the impact from its Prompt Security acquisition and foreign exchange effects.

In other recent news, SentinelOne reported strong second-quarter results, with its Annual Recurring Revenue (ARR) surpassing $1 billion, as noted by Piper Sandler. The company also achieved a record Net-New Annual Recurring Revenue growth of 90% sequentially, significantly exceeding previous guidance of approximately 32% quarter-over-quarter growth, according to Needham. Roth/MKM highlighted SentinelOne’s record ARR performance, describing it as possibly the largest ever for the company, while revenues aligned with expectations.

TD Cowen reiterated its Buy rating on SentinelOne, citing the company’s improved performance and expanded platform offerings, including the recent acquisition of Prompt AI. Meanwhile, Goldman Sachs maintained a Neutral rating on SentinelOne, lowering its price target to $21.00, and noted the company’s accelerating growth in core Endpoint security. Needham raised its price target to $23.00, maintaining a Buy rating, following the company’s record ARR growth. Piper Sandler also maintained an Overweight rating with a $28.00 price target, emphasizing SentinelOne’s improved execution. These developments reflect the company’s ongoing efforts to expand its platform and strengthen its market position.

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