JMP Securities analyst Trevor Walsh reiterated SentinelOne Inc (NYSE:S) with a market Outperform and a $33 price target.
The company reported solid fourth-quarter results Wednesday after the market close, with revenue of $174.2 million (consensus $169.4 million), up 38% Y/Y, ending ARR of $724.0 million (consensus $722.7 million), up 39% Y/Y, and RPO up 47% Y/Y and 15% Q/Q (attributable to larger contracts).
CEO Tomer Weingarten commented, “most of our growth comes from new accounts,” highlighting a particularly notable deal where a significant energy company replaced Splunk Inc (NASDAQ:SPLK) SIEM with SentinelOne’s Singularity Data Lake. The stock is down ~5.3% year-to-date (after sliding in the after-market reaction) vs. up 7.7% for the Russell 3000, Walsh said.
The analyst viewed the opportunity in front of SentinelOne as significant as he reiterated a unique endpoint security architecture emphasizing an AI-driven approach to disrupt a $100 billion TAM, a business that continues to integrate new technology tuck-in acquisitions to enhance the product smartly, showcased by 1/3 of new bookings ...