SentinelOne stock maintains Overweight rating at Piper Sandler on ARR growth

Published 29/08/2025, 12:56
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Investing.com - Piper Sandler has reiterated its Overweight rating and $28.00 price target on SentinelOne Inc (NYSE:S) following the company’s quarterly results. According to InvestingPro data, the company maintains strong financial flexibility with more cash than debt on its balance sheet, while analysts expect profitability this year despite current challenges.

The research firm highlighted SentinelOne’s improved execution in the second quarter, noting strong net new annual recurring revenue (NNARR) outperformance that pushed the company’s annual recurring revenue (ARR) above $1 billion.

Piper Sandler observed broad-based adoption of SentinelOne’s platform by both new and existing customers, along with healthy traction for emerging products in Cloud, Data and AI segments.

Despite these positive developments, SentinelOne raised its revenue guidance by only approximately $1.5 million at the midpoint, with management maintaining a cautious stance regarding macroeconomic conditions and the timing of large deals.

Piper Sandler noted that SentinelOne shares trade at approximately 4.5 times estimated enterprise value to calendar year 2026 revenue following after-hours movement, which the firm considers an attractive valuation at current risk/reward levels.

In other recent news, SentinelOne Inc reported its fiscal second-quarter 2026 results, showcasing a strong performance in several key areas. The company achieved a record Annual Recurring Revenue (ARR) beat, described as possibly the largest ever for SentinelOne, with revenues aligning closely with expectations. SentinelOne’s revenue for the quarter was $242.2 million, slightly above the consensus expectations of $242.1 million, marking a 22% year-over-year increase. Analysts from Roth/MKM, Cantor Fitzgerald, and Citizens JMP have reiterated their positive outlooks, maintaining Buy, Overweight, and Market Outperform ratings, respectively, with price targets ranging from $24.00 to $29.00. Scotiabank also raised its price target on SentinelOne to $21.00, citing an impressive year-over-year increase in new ARR and momentum in customer acquisition. KeyBanc, while maintaining a Sector Weight rating, noted the company’s strong performance, with ARR exceeding projections by $16 million and operating margins surpassing forecasts by 2 percentage points. These developments highlight SentinelOne’s consistent growth and positive reception from analysts.

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