Jefferies Raises SentinelOne Price Target as Growth Outlook Improves Ahead of Q1 Earnings
Jefferies Raises SentinelOne Price Target as Growth Outlook Improves Ahead of Q1 Earnings
SentinelOne is drawing fresh attention from Wall Street after Jefferies increased its price target for the cybersecurity company ahead of its first-quarter earnings report.
According to Proactive Investors, Jefferies lifted its price target on SentinelOne to $24 from $20, citing stronger visibility into long-term growth, improving profitability potential, and continued demand across the cybersecurity market. The company’s shares were trading around $19 at the time of the report.
Analysts See Better Growth Visibility
Jefferies analysts said SentinelOne’s valuation appears attractive, especially as the company is trading at about 4.5 times estimated calendar 2027 revenue. The analysts believe SentinelOne may benefit from stronger profitability in the second half of its fiscal year, supported by operating efficiencies and growing demand for cybersecurity products.
For the first quarter, market consensus expects SentinelOne to report around $41 million in net new annual recurring revenue, or NNARR. Jefferies noted that stronger-than-usual survey data could help the company reach investor expectations closer to $43 million to $44 million in NNARR.
Q1 Earnings Setup Remains Challenging
Although Jefferies raised its price target, the firm also warned that SentinelOne’s first-quarter earnings setup is not simple. Analysts pointed out that the company has narrowly missed first-quarter annual recurring revenue expectations in each of the past two years. This history has made some investors more cautious before the latest results.
Management has also indicated that about 50% of annual NNARR may come in the first half of fiscal 2027. That compares with about 42% in the prior-year period after adjustments for acquisitions and churn impacts. This could place pressure on near-term performance, even if the longer-term growth story remains positive.
Cybersecurity Demand Remains Healthy
Despite these concerns, Jefferies said the broader demand environment for cybersecurity remains strong. Endpoint security continues to be an important area for businesses as cyber risks increase and companies spend more to protect data, networks, cloud systems, and AI tools.
The analysts believe SentinelOne may have room to outperform current expectations if endpoint security demand stays stable and adoption of newer products continues to expand. This is important because current consensus estimates suggest NNARR growth may slow compared with fiscal 2026 levels.
AI Security Products in Focus
Artificial intelligence is expected to be one of the key topics during SentinelOne’s earnings call. Jefferies highlighted the company’s Prompt Security offering, an AI security product that more than doubled annual recurring revenue sequentially in the previous quarter.
Investors will likely watch for updates on AI-related deal activity, customer demand, and SentinelOne’s competitive position in the fast-growing AI security market.
Margins Could Improve Later This Year
Profitability is another major focus. Consensus estimates call for SentinelOne to report a non-GAAP operating margin of 2.3% for the first quarter, representing an improvement of about four percentage points from the same period a year earlier.
Jefferies expects margin expansion to accelerate later in the year. The firm said this could be helped by operational efficiencies, AI-driven productivity gains, and leadership from the company’s new chief financial officer.
Investor Takeaway
Overall, Jefferies’ higher price target reflects growing confidence in SentinelOne’s long-term outlook. While the first quarter may still carry risks, analysts see improving growth visibility, stronger margin potential, and possible upside from AI security products.
SentinelOne is scheduled to report its first-quarter earnings on May 28. Investors will be watching closely for updates on revenue growth, annual recurring revenue, AI product momentum, and profitability guidance.
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