SentinelOne cut at UBS, initiated with a Buy rating at Oppenheimer

January 16, 2025 05:19 AM AEDT | By Investing

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SentinelOne cut at UBS, initiated with a Buy rating at Oppenheimer

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Investing.com -- SentinelOne (NYSE:S) has seen mixed sentiment from Wall Street analysts on Wednesday, with UBS downgrading the cybersecurity firm to a Neutral rating, while Oppenheimer initiated coverage with an Outperform rating.

UBS also lowered its price target for SentinelOne to $25, citing concerns about limited catalysts through FY26.

The firm said, “partner checks indicate that win rates against CrowdStrike (NASDAQ:CRWD) have normalized,” and there is a "more reserved outlook on incremental contribution from the Lenovo partnership."

UBS noted that despite some optimism, investor sentiment may remain cautious due to potential risks to street estimates and conservative guidance expectations.

Oppenheimer, however, expressed a more optimistic view, initiating SentinelOne with an Outperform rating and a $32 price target.

The firm praised SentinelOne’s improved leadership and operational execution, as well as its potential in the non-endpoint market. Oppenheimer sees significant upside in SentinelOne’s cross-sell and upsell opportunities and believes the company could accelerate its net new annual recurring revenue (NNARR).

The firm stated, "Investors underestimate the potential of SentinelOne's recent adjustments" and expects valuation multiples to increase as the company demonstrates sustained performance and market share gains.

While UBS remains cautious on growth drivers and competitive pressures, Oppenheimer sees SentinelOne as well-positioned to capitalize on its broad platform and sales realignment efforts, signaling diverging outlooks on the company’s near-term prospects.

This article first appeared in Investing.com

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