SentinelOne Gains Bullish Analyst Coverage – Is The Stock A ‘Compelling Opportunity’?

SentinelOne's stock(NYSE: S) has been under pressure this year, down 21.5% since the turn of 2025, and leaving holders wondering whether the relative underperformance is likely to end anytime soon. With the stock down 60% over the past five years, the company has seen a bullish initiation of coverage by Rosenblatt Securities that may help shift the tide.

Analyst Catharine Trebnick launched coverage with a “Buy” rating and a $24 price target, suggesting a potential upside of over 35% from the current price action.

The firm's rationale centers on SentinelOne's leadership in applying artificial intelligence to cybersecurity, arguing that the company is fundamentally undervalued.

Rosenblatt estimates the stock is trading at a substantial 40% discount compared to its peers in the cybersecurity sector, which according to the firm, presents a “compelling opportunity” for long-term investors willing to navigate near-term macroeconomic uncertainties.

While the company has consistently earned recognition as a Leader in Gartner's Magic Quadrant for Endpoint Protection Platform, securing the position for the fifth consecutive year, there are risks that bear more than a cursory look.

Back in May, several analysts, including those from BofA Securities, JP Morgan, and Wells Fargo, downgraded SentinelOne's stock, citing concerns about profitability and competitive pressures within the sector. The company's most recent trailing twelve-month revenue was $864 million, but it also reported a net loss of $426 million.

The company's continued expansion of its AI-powered cybersecurity offerings, including recent integrations with Amazon Web Services (AWS), could provide a boost to its cloud security capabilities and attract new customers, yet the path from here remains cloudy.

Looking back to the street, and the average price target a shade above $23 indicates there to be a healthy perceived upside from here, although this could change on a dime.

Company's are very reluctant to cut cybersecurity spend, although the market is competitive, and there are names that are faring better right now. The initiation will be a boost to SentinelOne bulls, yet there will be plenty of data points to watch in upcoming earnings next month to dissect whether the thesis rings true.