SentinelOne needs ‘few quarters’ to ‘escape penalty box,’ says Morgan Stanley

Morgan Stanley notes that SentinelOne’s Q4 ARR was slightly ahead of consensus, while its free cash flow was weaker. The FY24 topline outlook was below consensus and a "slight downtick" from the preliminary outlook given last quarter, added the analyst, who thinks it will "take a few quarters for the stock to escape the penalty box" and argues shares are "too cheap to sell," but its also "too early to buy." The firm keeps an Equal Weight rating and $16 price target on SentinelOne shares.