Citizens Sees Re-Rating Potential for SentinelOne (S) Despite Slower Growth

SentinelOne, Inc. (NYSE:S) is one of the AI Stocks in the Spotlight for Investors. On December 15, Citizens reiterated its “Market Outperform” rating on the stock with a $23.00 price target. The firm is cautiously positive on the stock, noting room for re-rating despite slower growth.

Citizens maintains its positive outlook on SentinelOne despite its "lack of scale relative to peers" and "declining top-line growth rate relative to profitability expectations."

"SentinelOne currently trades at a CY26E EV/revenue multiple of 3.7x, while our $23 price target assumes a CY26E EV/revenue multiple of 6.0x, which is a discount to the peer group median multiple of 11.1x."

"We believe this is justified given SentinelOne's lack of scale relative to peers, combined with a declining top-line growth rate relative to profitability expectations."

The firm believes that there is room for re-rating provided execution improves, even if revenue growth remains moderated.

SentinelOne, Inc. (NYSE:S) is one of the leading artificial intelligence-powered cybersecurity providers.

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