Jefferies Trims SentinelOne (S) Price Target, Maintains Buy Rating

SentinelOne, Inc. (NYSE:S) is one of 12 best cybersecurity stocks to buy now. 

Jefferies analyst Joseph Gallo has lowered the firm’s price target on SentinelOne, Inc. (NYSE:S) to $23 from $25, while maintaining a Buy rating on the shares. The adjustment reflects a broader reduction in price targets across Jefferies’ U.S. software coverage, prompted by recent multiple compression and early signs of softening macroeconomic conditions affecting deal-making in the technology sector.

Gallo pointed out that these factors could lead to what he describes as another “mullet” year for software companies, characterized by a challenging first half followed by a stronger second half. Despite this outlook, Jefferies has not yet lowered its earnings estimates for SentinelOne, choosing instead to await further data from upcoming first-quarter checks.

The analyst also noted that SentinelOne’s recent guidance assumed no significant improvement in market conditions, underscoring the cautious tone from management. As uncertainty continues, many investors appear to be holding back, adopting a wait-and-see approach to gauge how the evolving environment will affect technology spending and deal activity. While the cautious stance has led to a tempered near-term outlook, Jefferies remains positive on SentinelOne’s longer-term prospects, keeping a Buy rating on the stock.

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