Analysts Initiate Coverage On SentinelOne Betting On Growth Prospects, Remain Cautious Over Its Current Valuations

Several analysts initiated coverage on SentinelOne Inc S, seeing upside due to its growth prospects. Few analysts were also cautious about the current valuation.

Analyst Ratings: Jefferies analyst Brent Thill initiated coverage of SentinelOne with a Hold rating and $50 price target, implying a 7.4% upside. 

Thill estimates tremendous opportunity with its automated security platform protecting workloads across all environments and endpoints. However, he is wary of SentinelOne's high valuations.

Wells Fargo analyst Andrew Nowinski initiated coverage of SentinelOne with an Overweight rating and a $55 price target, implying an 18.1% upside.

Nowinski considers it a top vendor in the endpoint security market capable of winning market share from legacy and next-generation vendors.

BTIG analyst Gray Powell initiated coverage of SentinelOne with a Buy rating and $61 price target, implying a 31% upside. 

Powell acknowledges the current high valuations relative to its security space peers. He also expresses conviction on its hyper-growth for at least the next five years and probably longer. 

Powell remains optimistic over the unique core corporate endpoint security target market leading to elevated demand trends and migrating away from legacy solutions. All of which creates a massive opportunity for the company to gain market share.

Piper Sandler analyst Rob Owens initiated coverage of SentinelOne with a Neutral rating and a $48 price target, implying a 3.1% upside. 

Owens remains optimistic about the company's growth potential and market opportunity. However, he remains cautious regarding the current valuation.

BofA analyst Tal Liani initiated coverage of SentinelOne with a Buy rating and $62 price target, implying a 33.2% upside. The company's impressive revenue growth in 2020 with 62% growth in customer additions and a strong upsell in new products back the rating. 

Liani expects SentinelOne to generate about a 70% annual growth rate for the next few years, driven by agent expansion, platform upselling, module cross-selling, and total addressable market (TAM) expansion opportunities in adjacent markets.

Barclays analyst Saket Kalia initiated coverage of SentinelOne with an Overweight rating and a $57 price target, implying a 22.4% upside. 

The TAM for corporate endpoint security market spending could continue to expand, and a favorable competitive backdrop could benefit SentinelOne, Kalia noted.

Goldman Sachs analyst Brian Essex initiated coverage of SentinelOne with a Buy rating and $57 price target. 

Essex considers it well-positioned to continue to take Endpoint market share, expand into adjacent markets, and deliver strong growth with improving fundamentals.

Price action: S shares traded higher by 3.41% at $48.15 in the premarket session on the last check Monday.

Photo by Werner Moser from Pixabay