William Blair analyst Jonathan Ho has maintained their bullish stance on S stock, giving a Buy rating yesterday.
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Jonathan Ho has given his Buy rating due to a combination of factors, despite SentinelOne’s recent underperformance. The company faced macroeconomic challenges that affected its quarterly results, with revenue aligning with expectations but annual recurring revenue (ARR) falling short. However, SentinelOne anticipates an improvement in the second quarter, with net new ARR expected to surpass historical seasonal trends.
Furthermore, the company has initiated a $200 million share buyback program, indicating its belief that the stock is undervalued. Although growth prospects are somewhat hindered by macroeconomic factors, SentinelOne is gaining market share, and no deals have been canceled. The company is also focusing on AI, SIEM replacements, cloud, and product bundles as key growth drivers, with AI being a significant component of new deals. Despite the challenges, the company achieved four consecutive quarters of positive earnings, which supports the Buy rating.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $23.00 price target.
Based on the recent corporate insider activity of 92 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of S in relation to earlier this year.