SentinelOne price target lowered to $25 from $31 at Needham

Needham lowered the firm’s price target on SentinelOne to $25 from $31 but keeps a Buy rating on the shares. The company’s Q1 results were “disappointing” as revenue exceeded estimates but annual recurring revenue growth of 35% fell shy of consensus, the analyst tells investors in a research note. Needham adds that SentinelOne’s revised FY24 outlook also disappointed as the company reduced its revenue outlook to reflect the more challenging macro backdrop and the go-to-market transition behind the new CRO, even though the management expressed improved line of sight to stronger new business growth in the second half of the year, led by emerging products, growing pipeline, and improving conversion rates.