Adrian Johnson
TLDR:
SentinelOne Inc. shares soared after Bank of America Securities upgraded the stock and raised its price target. The analysts expressed optimism about the cybersecurity industry, citing strong fourth-quarter deal activity and improving sales cycles. BofA raised the price target to $35 from $26.50, calling SentinelOne “one of the favorites in endpoint security.”
SentinelOne shares jumped after Bank of America Securities upgraded the stock and lifted its price target amid overall optimism about the cybersecurity industry. BofA raised its rating to buy from neutral and increased the price outlook to $35 from the previous $26.50. The analysts called SentinelOne “one of the favorites in endpoint security.” The analysts said the $35 valuation is justified because of the company’s risk profile based on the macro environment and IT spending conditions.
The BofA report sent shares of SentinelOne stock to its highest level since April 2022 early Wednesday. At close the share price was $30, up nearly 3.5% on the day and nearly double what SentinelOne was trading at a year ago.
This upgrade comes after the release of a customer survey that showed strong deal activity in the fourth quarter of 2023 and suggested that future sales cycles would improve. The cybersecurity industry is expected to experience better macroeconomic conditions and larger deal sizes as the sector continues to grow. The positive outlook for the industry from BofA aligns with reports from their channel partners, who are also customers of cybersecurity products.
In summary, Bank of America Securities upgraded SentinelOne Inc. stock and raised its price target, expressing optimism about the cybersecurity industry based on strong deal activity and improving sales cycles. The upgrade boosted the share price to its highest level in nearly two years.
