
SentinelOne (S) Stock Forecast & Price Target
SentinelOne (S) Analyst Ratings
Bulls say
SentinelOne reported a year-over-year revenue increase of 23% to $258.9 million, exceeding both internal guidance and consensus forecasts, reflecting strong execution and growth through new customer acquisition and expansion within existing accounts. The company demonstrated an accelerated annual recurring revenue (ARR) growth rate of 23% to $1,055.3 million, surpassing expectations and indicating solid top-line momentum, while its remaining performance obligations (RPO) experienced a notable 35% year-over-year growth as a result of strategic initiatives like the launch of Flex. Additionally, SentinelOne's recent acquisitions signal a commitment to enhancing its market position, contributing to improved operational efficiency and sustainable positive free cash flow margins.
Bears say
SentinelOne's outlook is negatively impacted by expectations of a back-end loaded quarter and a lower-than-anticipated services contribution, which may affect revenue performance despite not impacting annual recurring revenue (ARR). The company faces challenges due to its limited scale compared to competitors, a declining top-line growth rate, and reduced gross margin guidance, which has been adjusted down from the prior range amid increased investment in cloud infrastructure. Additionally, risks such as intense competition, a high cash burn rate, macroeconomic pressures on growth valuations, reliance on a small number of channel partners, and dependency on cloud hosting through AWS further complicate SentinelOne's financial trajectory and raise concerns about its long-term profitability potential.
This aggregate rating is based on analysts' research of SentinelOne and is not a guaranteed prediction by Public.com or investment advice.
SentinelOne (S) Analyst Forecast & Price Prediction
Start investing in SentinelOne (S)
Order type
Buy in
Order amount
Est. shares
0 shares