SentinelOne Analyst's 3 Reasons Why There Is Significant Upside To Future Estimates

SentinelOne Inc S shares have been in focus with the growing cybersecurity concerns among businesses.

The current estimates for the company over the next 18 months appear "too low," according to Piper Sandler.

Analyst Rob Owens upgraded the rating for SentinelOne from Neutral to Overweight, while raising the price target from $25 to $32.

The SentinelOne Thesis: The expectations over the next four to six quarters appears too conservative and there are three key catalysts that are likely to drive incremental NNARR (net new annual recurring revenue), Owens said in the upgrade note.

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First is SentinelOne's expanded partnership with Lenovo Group Ltd LNVGY: This expansion of an existing reseller partnership "will see the Singularity Platform + Purple AI embedded in new commercial PC shipments, a new MDR service built on Singularity, alongside expanded reseller terms," the analyst stated.

Second is a boost to SentinelOne's performance from CrowdStrike Holdings Inc's CRWD debacle: The global outage should cause CrowdStrike "some level of churn" and recent management commentary suggests that SentinelOne will "pick up its fair share of this churn — which is not properly reflected in estimates," he added.

Third is the traction with Purple AI: "We believe Purple's automation/threat hunting capabilities will help set the solution apart from other security copilots, and will be an important and underappreciated growth driver for the company going forward," Owens further wrote.

S Price Action: Shares of SentinelOne had risen by 2.84% to $26.44 at the time of publication on Monday.

Read More:
• SentinelOne Posts Q2 Beat, 6 Analysts Cite Benefits Of CrowdStrike Customer Churn: ‘Outage Was A Net Positive’

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