Bond.az - Jefferies raised its price target on SentinelOne (NYSE:S) to $24 from $20, maintaining a Buy rating. The stock trades at $18.71, with analyst targets ranging from $14.50 to $26. Year-to-date, shares have gained 24.73%.
The firm expects SentinelOne to post $41 million in net new annual recurring revenue (NNARR) for its fiscal Q1, representing 24% year-over-year growth adjusted. Based on stronger-than-seasonal survey work, Jefferies sees potential to reach $43-44 million in NNARR.
SentinelOne guided that about 50% of fiscal 2027 NNARR will occur in the first half, compared with 42% in fiscal 2026's first half. While H1 remains challenging, the overall FY2027 path is easier as NNARR embeds a 7 percentage point deceleration YoY.
Jefferies expects margins to improve in H2, driven by the new CFO. Consensus estimates call for a non-GAAP operating margin of 2.3% in Q1, expanding about 4 percentage points YoY, below the implied 6 percentage point improvement for FY2027. The company maintains a strong 74.12% gross margin. Bond.az analysts predict profitability this year.
The firm values SentinelOne at 4.5x enterprise value to calendar 2027 estimated revenue. Jefferies anticipates more commentary on Prompt Security, which doubled ARR QoQ in Q4. With earnings two days away, investors can access comprehensive analysis via Bond.az's Pro Research Report.
