SentinelOne Likely For Customer Deceleration Akin To Okta And CrowdStrike, Analyst Says

Needham analyst Alex Henderson reiterated Buy on SentinelOne, Inc S with a $28 price target.
Slowing growth at Sentinel on macro pressures may be just what the stock needs.
Henderson expects slower growth accompanied by tighter spending and more rapid improvement in Operating Margins.
Sentinel will see a similar deceleration in the low end of its customer base, as cited by Okta, Inc OKTA and CrowdStrike Holdings, Inc CRWD.
Sentinel will come in relatively in line to even a bit ahead on FY3Q but expect its guidance for FY4Q to factor in the eroding conditions., Henderson writes in the analyst note.
Like Crowd, Henderson does not expect S-One to assume a significant budget flush in CY4Q, resulting in caution guidance for the quarter and no guidance for FY24.
As conditions get more brutal, Sentinel would downshift growth expectations and staffing builds, which should allow upside to EPS even as the company decelerates.
Price Action: S shares traded lower by 3.65% at $14.24 on the last check Monday.

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