SentinelOne fits criteria for strategic interest, says TD Cowen

TD Cowen notes that the cybersecurity area saw "healthy consolidation activity" in 2022, led mainly by private equity funds. While strategic investors were "mostly on the fence" during that consolidation, the firm believes a "FOMO cycle" could include SentinelOne (S) as a platform target. When examining if "the big tech behemoths" could reconsider their M&A strategies, the firm believes the likes of Microsoft (MSFT), Cisco (CSCO), IBM (IBM), HP Inc. (HPQ), Alphabet (GOOGL) and Amazon (AMZN) would look at prerequisites that include enterprise level and SMBs driven cutting edge technologies addressing AI/ML efficiencies, growing market share, expanding platform capabilities and a target preferably being profitable or "near cash flow generating levels." The firm, which argues that SentinelOne "is addressing all the prerequisites mentioned," believes the company could "see some growing strategic interest" and it keeps an Outperform rating and $35 price target on the shares.