Wells Fargo raises SentinelOne stock price target, expects solid Q4 results

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Wells Fargo raises SentinelOne stock price target, expects solid Q4 results
Credit: © Reuters.

On Monday, Wells Fargo (NYSE: WFC ) made an adjustment to its outlook on SentinelOne Inc (NYNYSE: S E: S), a cybersecurity firm, by increasing its price target to $28.00, up from the previous $22.00. The analyst at Wells Fargo maintained the stock's Equal Weight rating, indicating a neutral stance on the company's shares.

The revision comes as SentinelOne is poised to release its fourth-quarter results for fiscal year 2024 on Wednesday, March 13, at 5:00 PM ET.

"We are expecting the company to report solid results and are modestly raising our revenue and ARR estimates on the heels of strong reseller checks," said Wells Fargo.

On this basis, the firm has slightly raised its revenue and Annual Recurring Revenue (ARR) estimates for SentinelOne.

The analyst expects that the company's management will likely forecast revenue slightly above the market consensus, projecting it to be in the vicinity of $820 million. However, the analyst also expressed caution regarding the operating margin (OM) expectations for fiscal year 2025. The prediction is that management will likely set the OM guidance below the consensus, in the range of negative 7 to 8 percent.

InvestingPro Insights

As SentinelOne Inc (NYSE: S) approaches its earnings report date, investors are keenly observing its performance metrics. Based on real-time data from InvestingPro, SentinelOne's market capitalization stands at $8.2 billion, reflecting its substantial presence in the cybersecurity sector. The company's revenue growth has been impressive over the last twelve months as of Q3 2024, with a notable increase of 58.43%. This aligns with Wells Fargo's anticipation of strong performance and supports the notion that SentinelOne could indeed project revenue slightly above market consensus.

InvestingPro Tips for SentinelOne suggest that analysts have revised their earnings upwards for the upcoming period, which could be a positive sign for investors looking for growth potential. Furthermore, the company has experienced a large price uptick over the last six months, with a 55.35% return, indicating a robust market sentiment.

Investors considering SentinelOne's stock can find additional insights and tips on InvestingPro, with 23 more analysts' perspectives available to help make informed decisions. For those interested in a deeper analysis, using the coupon code PRONEWS24 will provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/S.

SentinelOne's current trading price is close to the fair value estimates provided by analysts and InvestingPro, suggesting that the stock is being traded at a price that reflects its intrinsic value. As the market anticipates the company's earnings report, these metrics and insights will be crucial for evaluating SentinelOne's financial health and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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