SentinelOne soars on 'emerging cybersecurity challenger' label from Wall St


FILE PHOTO: The logo for SentinelOne Inc, a cybersecurity firm, is displayed on a screen during the company’s IPO at the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2021. REUTERS/Brendan McDermid/File Photo

(Reuters) - SentinelOne surged nearly 14% on Wednesday after a strong quarterly revenue forecast signaled its entry into the cybersecurity big leagues, challenging larger rivals like Microsoft and CrowdStrike.

The stock hit a more than one-year high and could add nearly $1 billion in value if gains hold, topping up a rise of about 37% notched for the year so far.

SentinelOne's consolidated platform for enterprise customers as well as the competitive advantages of its Data Lake product are among the top factors behind its growth and rising customer base, analysts have said.

Its efforts to tap growing demand for security services focused on end-user devices such as laptops and smartphones are also paying off.

"We view SentinelOne as an emerging challenger in the endpoint security space, a prominent part of the cybersecurity stack that has been dominated by larger competitors such as Microsoft and CrowdStrike," Morningstar analysts said in a note.

SentinelOne has also rolled out products such as the generative AI-powered Purple AI and Singularity platform to help plug vulnerabilities that come with the rising digital presence of businesses.

"We continue to win a significant majority of competitive evaluations against both next-gen and legacy endpoint providers," said CEO Tomer Weingarten.

D.A. Davidson analysts said Data Lake, a data collection and investigation product, offers notable cost savings and superior speed than rival Splunk, which is set to be bought by Cisco for $28 billion.

At least eight brokerages raised their price targets on SentinelOne, with an average rating of "buy" and median target of $20, in line with closing prices before its results on Tuesday.

SentinelOne forecast fourth-quarter revenue of $169 million and projected $616 million in annual sales, both surpassing estimates, according to LSEG data.

The stock has a 12-month forward price-to-sales ratio - which measures valuation - of 7.7, compared with larger rival CrowdStrike's 15.1 and 10.7 for Microsoft, whose operations also include endpoint security.

(Reporting by Akash Sriram in Bengaluru; Editing by Devika Syamnath)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Montenegro court says Do Kwon should be extradited to US, WSJ reports
Banks should be managing risks from fintech partnerships, regulator says
California suspends Waymo expansion application until June 19
New Arm offering to speed creation of custom data center chips
Intel signs Microsoft as foundry customer, says on track to overtake TSMC
Texas crypto company sues SEC for 'overreach' on digital assets
US smartphone sales slump in January on fewer device upgrades, Counterpoint finds
At hefty premium, Russian resellers hawk Apple Vision Pro goggles
Google brings Gemini AI models to enterprise tools
Lockbit crackdown heats up as US offers reward for info on hackers

Others Also Read