On Thursday, DA Davidson announced an adjustment to the price target for SentinelOne Inc (NYNYSE:SE: S), increasing it to $24.00 from the previous $22.00, while maintaining a Neutral rating on the stock. The firm's decision came after SentinelOne reported fourth-quarter results that exceeded expectations, especially in operating margins.
However, the annual recurring revenue (ARR) increase was slight compared to the recent report from CrowdStrike Holdings Inc (NASDAQ: NASDAQ:CRWD), which holds a Buy rating.
SentinelOne's fiscal year 2025 guidance suggested revenue growth of 31% year-over-year at the midpoint, slightly below the consensus of 33%. Additionally, the projected operating margins are at negative 4%, compared to the negative 2% anticipated by the consensus.
This guidance takes into account the ongoing macroeconomic uncertainties, and management has indicated a cautious approach, stating that they are not aiming for significant "beat and raise" quarters.
The stock experienced a 12% drop in after-hours trading, which, according to DA Davidson, is not sufficient to change their stance from the sidelines. The firm's analyst cited the solid fourth-quarter performance but also acknowledged the conservative guidance for the upcoming fiscal year.
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