SentinelOne (NYSE:S) shares surged nearly 18% in the early session today after the cybersecurity provider’s strong third-quarter results were followed by positive reactions from Wall Street.
Revenue jumped by 42.4% year-over-year to $164.2 million. Additionally, net loss per share of $0.03 came in narrower than estimates by $0.05. During the quarter, annualized recurring revenue increased by 43% to $663.9 million, and the dollar-based net revenue retention rate hovered above 115%. Concurrently, the company’s gross margin improved to 73% from 64%.
This marked improvement enabled SentinelOne to provide an optimistic financial outlook. For Fiscal Year 2024, the company expects revenue to hit $616 million, up from its prior projection of $605 million. For the upcoming quarter, revenue is anticipated to be $169 million.
What is the Stock Price Projection for S?
Today, the raised outlook and margin improvement prompted JMP Securities’ Trevor Walsh to reiterate a Buy rating on the stock while increasing the price target to $33 from $22. However, KeyBanc’s Eric Heath has maintained a Hold rating on the stock without assigning it a price target.
SentinelOne’s share price has surged nearly 57% over the past six months amid the rising importance of cybersecurity. Overall, the Street has a Moderate Buy consensus rating on SentinelOne, and the average S price target of $22.40 implies a further 12% potential upside.
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