Piper Sandler cuts SentinelOne stock price target to $28

On Thursday, Piper Sandler adjusted its outlook on SentinelOne Inc (NYNYSE:SE: S) shares, reducing the price target to $28 from the previous $32 while maintaining an Overweight rating. The firm’s analyst cited a mix of challenges and positive signs from the cybersecurity company’s recent performance. According to InvestingPro data, SentinelOne’s stock has declined about 31% over the past year, with the current market capitalization standing at approximately $5.95 billion. Despite a slight miss on annual recurring revenue (ARR) and a lower guidance for fiscal year 2026, the analyst noted accelerated revenue and $100K customer growth at the end of the year. The traction of SentinelOne’s solutions beyond endpoint security was also highlighted, as these offerings accounted for more than half of the company’s bookings throughout the year.

The after-hours trading session saw a selloff of SentinelOne stock, which the analyst believes has brought the company’s valuation to an attractive level. With the stock’s valuation now below 4 times revenue, Piper Sandler sees this as a compelling entry point for investors, given SentinelOne’s robust growth and conservative guidance for the upcoming year. InvestingPro analysis suggests the stock is currently undervalued, with several additional metrics and insights available to subscribers, including detailed valuation models and financial health scores.

The analyst’s statement emphasized the underlying positive indicators for SentinelOne, expressing confidence in the stock’s potential moving forward. "Sticking with S; The negatives on the quarter were evident - but underneath, there were some signs that keep us optimistic on the stock from here," said the Piper Sandler analyst. Supporting this optimism, InvestingPro data shows impressive revenue growth of 34.38% and a strong gross profit margin of 73.63%.

SentinelOne’s performance in the cybersecurity sector has been marked by significant customer growth and an expanding portfolio of solutions. The company’s ability to grow its $100K customer base and demonstrate material traction beyond endpoint security solutions throughout the year were seen as key strengths.

Investors and market watchers will be keeping an eye on SentinelOne as the company navigates the challenges of its ARR miss and lowered future guidance. With analyst price targets ranging from $18 to $36, and a consensus recommendation leaning toward Buy, the stock presents an interesting opportunity. With the revised price target of $28, Piper Sandler continues to recommend an Overweight stance on the stock, reflecting a positive outlook despite the recent adjustments to financial estimates. For deeper insights into SentinelOne’s valuation and growth prospects, investors can access comprehensive analysis through the Pro Research Report available on InvestingPro.

In other recent news, SentinelOne Inc reported mixed financial results for its fourth quarter and fiscal year 2026 guidance. The company achieved a 27% year-over-year growth in annual recurring revenue (ARR) to $920.1 million, which slightly missed consensus estimates. Despite a modest revenue beat and healthy operating margin upside, the company’s guidance for the first quarter and full-year 2026 was below market expectations. Analysts at Citi and Needham responded by lowering their price targets to $21 and $23, respectively, citing mixed results and unmet investor expectations. Meanwhile, Scotiabank (TSX:BNS) reduced its price target to $19, maintaining a Sector Perform rating due to the company’s modest 2% growth projection in net new ARR for FY26. Cantor Fitzgerald also adjusted its price target to $24, noting that SentinelOne’s quarterly report exceeded revenue, operating income, and earnings per share estimates but fell short in gross margin and ARR. Despite these challenges, SentinelOne’s management remains optimistic about a 22% year-over-year increase in ARR for fiscal year 2026, driven by positive demand trends and the adoption of emerging solutions. The company’s guidance also includes a $10 million impact from retiring its Deception product, which affected fourth-quarter ARR. Analysts remain cautious, with some suggesting that SentinelOne’s full-year guidance may be conservative, reflecting the competitive and uncertain macroeconomic environment.

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