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On Thursday, Bernstein SocGen Group has revised the price target for SentinelOne Inc (NYSE:S) shares, reducing it to $25 from the prior $27, while continuing to endorse the stock with an Outperform rating. The stock, currently trading at $19.67, has experienced a significant decline of nearly 30% over the past six months, according to InvestingPro data. Peter Weed, the group’s analyst, has attributed the adjustment to economic challenges encountered in April which affected SentinelOne’s first-quarter earnings for fiscal year 2026. The company experienced a delay in deal closures within the quarter, leading to a marginal guidance beat that was slightly above 0%, a stark contrast to the 1-3% beats seen in the previous year’s quarters. Despite these challenges, InvestingPro data shows the company maintains strong financial fundamentals with a healthy current ratio of 1.74 and more cash than debt on its balance sheet.
The analyst’s report indicated that the difficulties in April predominantly hampered the acquisition of new customers, whereas the growth from existing customer expansions remained steady. SentinelOne reported a greater struggle with larger enterprises in comparison to smaller ones. In light of these developments, Bernstein SocGen has slightly increased its quarter-over-quarter Annual Recurring Revenue (ARR) growth projections for the second quarter, but has lowered the revenue expectations for the second half of the fiscal year due to the DOGE headwinds.
The revised price target of $25 is derived from a balanced application of a 9x Price to Next (LON:NXT) Twelve Months (NTM) revenue multiple, which is based on their Rule-of-40 regression, and a Discounted Cash Flow (DCF) model that assumes a 13% Weighted Average Cost of Capital (WACC) and a 3% terminal growth rate. Despite the lowered price target, Bernstein SocGen maintains a positive outlook on SentinelOne shares with an Outperform rating, indicating their expectation that the stock will outperform the sector or the market over a set period of time. InvestingPro analysis suggests the stock is currently undervalued, with analysts projecting profitability this year. For deeper insights into SentinelOne’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, SentinelOne Inc reported mixed results for its first fiscal quarter of 2026, with a slight revenue beat but falling short of expectations on net new annual recurring revenue (NNARR) and billings. The company adjusted its full-year revenue forecast downward, citing economic uncertainty and deal delays in April. Cantor Fitzgerald maintained an Overweight rating with a $24 price target, expressing optimism about a potential rebound in NNARR and steady margin improvement in the coming quarters. Scotiabank (TSX:BNS) adjusted its price target to $18, maintaining a Sector Perform rating, highlighting concerns over longer sales cycles and missed deals.
JPMorgan downgraded SentinelOne from Overweight to Neutral, reducing the price target to $19 due to recurring ARR misses and a lowered growth outlook. DA Davidson also revised its price target to $17, keeping a Neutral rating, noting that SentinelOne’s NNARR fell short of consensus estimates. BTIG cut the price target to $21 but maintained a Buy rating, acknowledging the company’s strategic importance and potential for over 20% growth despite recent setbacks. SentinelOne’s ongoing challenges include macroeconomic factors and competition, yet positive developments in areas like Cloud, AI, and Data offer some optimism for future performance.
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