SentinelOne Inc (S) PT Lowered to $21 at Bernstein

Bernstein SocGen Group analyst Peter Weed lowered the price target on SentinelOne Inc (NYSE: S) to $21.00 (from $26.00) while maintaining an Outperform rating.

The analyst commented: "Narrative not helpful, fundamental OK; SentinelOne’s FQ3’26 delivered its largest guidance beat of the year at ~$3MM, but spoiled the fun as only ~$1MM of the beat was passed through to the FY expectation (lowering the previously implied FQ4 guide). The company explained it wasn’t a guide down, and instead reflected $2MM of the beat was from professional services — as this revenue is not recurring it wouldn’t add to Q4 results. In addition, they pointed out Q4 is the annually largest quarter and variables like timing of holidays and budget spend priorities can make it harder to predict, so they try to have the most conservative guide of the year in that quarter.

Our model’s ARR is mostly lowered and margin expectations are largely consistent. But their narrative remains challenged, and we are dropping their multiples consistent with other narrative challenged software vendors. Applying a 50/50 ~6.5x Price to NTM revenue multiple (down from 8x) from our Rule-of-40 regression, and our DCF model (12% WACC, 3% terminal growth), we decrease our PT to $21 and maintain our Outperform rating."

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