SentinelOne stock price target raised to $23 from $22 at Needham

Investing.com - Needham raised its price target on SentinelOne Inc (NYSE:S) to $23.00 from $22.00 on Friday, while maintaining a Buy rating on the cybersecurity company’s stock. According to InvestingPro data, analysts maintain a bullish consensus on the stock, with price targets ranging from $18 to $30.

The price target increase follows SentinelOne’s record second quarter for Net-New Annual Recurring Revenue (ARR), which grew 90% sequentially, significantly outpacing previous guidance of approximately 32% quarter-over-quarter growth. This impressive performance aligns with the company’s robust revenue growth of 25.4% over the last twelve months, as reported by InvestingPro.

Needham noted that SentinelOne’s performance was driven by broad-based strength across new customer acquisitions, existing customer expansions, and sustained traction for emerging products, which contributed approximately 50% of quarterly bookings.

Within the emerging products category, the Data offering continues to show healthy growth after reaching more than $100 million in ARR last quarter, while Purple AI achieved over 30% attach rates to licenses sold during the quarter.

Despite delivering $16 million in upside to second-quarter ARR, SentinelOne management increased its fiscal year 2026 revenue guidance by only $1.5 million at the midpoint, which Needham interpreted as prudence to account for a growing volume of large deals in the pipeline with reduced visibility to close.

In other recent news, SentinelOne Inc has reported significant achievements in its latest quarterly financial results. The company exceeded expectations with its annual recurring revenue (ARR), which surpassed the $1 billion mark, showcasing strong performance in the second quarter. Notably, SentinelOne’s revenue was in line with expectations, as highlighted by several analysts. Piper Sandler, Roth/MKM, and Cantor Fitzgerald all reiterated their positive outlooks, with Piper Sandler maintaining an Overweight rating and a $28 price target. Roth/MKM also upheld a Buy rating with a $26 target, citing a record ARR beat. Cantor Fitzgerald echoed this sentiment with an Overweight rating and a $24 target, noting the company’s outperformance in ARR and operating margins. Meanwhile, Scotiabank raised its price target from $18 to $21, acknowledging the company’s year-over-year ARR growth and momentum in customer acquisition. KeyBanc maintained a Sector Weight rating, recognizing the company’s strong fiscal performance and operating margin improvements. These developments reflect a robust quarter for SentinelOne, with analysts maintaining confidence in its growth trajectory.

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