SentinelOne shares target raised to $29 on strong revenue at FBN

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SentinelOne shares target raised to $29 on strong revenue at FBN
Credit: © Reuters.

On Thursday, FBN Securities adjusted their outlook on SentinelOne Inc (NYNYSE: S E:S), a cybersecurity firm, by increasing the price target to $29.00, a slight rise from the previous $28.00. The firm reiterated its Outperform rating for the company's shares.

This adjustment follows SentinelOne's fourth fiscal quarter report, which displayed a robust performance with a 38% year-over-year increase in revenue, surpassing consensus estimates by 3%.

The company's annual recurring revenue also saw a significant rise, with a 39% year-over-year growth, slightly exceeding consensus expectations. Additionally, the company experienced a substantial 50% year-over-year increase in billings, which was 16% higher than consensus estimates.

Despite these positive indicators, SentinelOne's stock is anticipated to show some weakness. This is partly because the ARR figures were only marginally above consensus, which is considered less impressive compared to the over 1% beats in the previous two quarters.

Furthermore, the company's dollar-based net retention rate has seen a decline, settling at approximately 115%. This is a drop from the over 115% reported in the prior two quarters and a more significant fall from the over 130% reported the previous year.

The new price target reflects a confidence in SentinelOne's continued growth and performance in the cybersecurity sector, despite the noted potential challenges reflected in the stock's anticipated weakness and the slight decline in the DBNRR.

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