SentinelOne , Inc. (NYSE:S) was raised to Buy from Neutral at BofA on Wednesday, with analysts at the firm also lifting the price target for the stock to $35 from $26.50 per share.
The bank said they upgraded the stock based on robust industry tailwinds and improving macroeconomic conditions.
"Though competition remains intense, our more positive view is driven by our expectations for the near-term pathway to profitability and FCF generation, re-accelerating net new ARR growth, long-term industry tailwinds and improving market conditions," said the bank.
The latest checks from BofA were positive, which they believe could also support the stock in the near term.
"We believe the strong momentum should continue through F4Q24," added the bank. They also said they have confidence in the company's ability to overcome the competitive challenges and continue gaining share in endpoint security and the adjacent markets.