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Investing.com - TD Cowen has reiterated its Buy rating and $24.00 price target on SentinelOne Inc (NYSE:S), currently valued at $5.8 billion, following the cybersecurity company’s second-quarter results that met or exceeded Street estimates. According to InvestingPro analysis, the stock appears slightly undervalued at current levels.
The firm noted that SentinelOne management raised its second-half guidance, with performance improvements attributed to better execution, stable macroeconomic conditions, and an expanded platform offering that will accelerate with the recent Prompt AI acquisition. The company maintains a strong financial position with a healthy current ratio of 1.83 and more cash than debt on its balance sheet.
TD Cowen views SentinelOne as undervalued at 4x EV/FY27 revenue, though it emphasized that second-half performance remains crucial for building sustained execution levels.
The research firm highlighted SentinelOne’s encouraging Net New Annual Recurring Revenue (NNARR) trajectory as a positive indicator for future growth.
For fiscal year 2026, TD Cowen expects SentinelOne to deliver positive free cash flow and profitability, driven by healthy security demand and strong product traction.
In other recent news, SentinelOne reported significant developments in its financial performance and received various analyst updates. The company achieved a record second quarter for Net-New Annual Recurring Revenue (ARR), with a remarkable 90% sequential growth, surpassing its previous guidance. This strong performance pushed SentinelOne’s ARR above $1 billion, as noted by Piper Sandler, which maintained an Overweight rating and a $28 price target. Cantor Fitzgerald also reiterated its Overweight rating, highlighting that SentinelOne’s revenue met expectations while ARR and operating margin exceeded forecasts.
Despite mixed results, Roth/MKM maintained a Buy rating with a $26 price target, emphasizing the company’s record ARR achievement. Needham increased its price target for SentinelOne to $23 from $22, maintaining a Buy rating, following the company’s substantial ARR growth. Goldman Sachs, however, lowered its price target slightly to $21 while keeping a Neutral rating, citing SentinelOne’s growth in core Endpoint security and new product offerings. These developments reflect SentinelOne’s ongoing efforts to enhance its market position and financial performance.
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