SentinelOne (S) Downgraded by BofA on Growth Concerns, Target Price Trimmed

Tal Liani of Bank of America Securities has downgraded SentinelOne Inc. (NYSE:S) from a Buy to a Neutral rating and reduced the stock’s price target to $21 from $24, on May 29.

The downgrade follows disappointing execution by the company over recent quarters, leading to consecutive downward revisions in its financial guidance. After reporting Q1 FY2026 results, SentinelOne lowered its full-year revenue forecast by $11 million, now expecting between $996 million and $1.0 billion.

Additionally, the company’s annual recurring revenue (ARR) growth of 24% came in below expectations, primarily due to stronger-than-anticipated macroeconomic headwinds. The report notes lengthening sales cycles and delayed purchasing decisions by clients, which may point to difficulties in upselling its product offerings.

More notably, Liani compared SentinelOne with its larger peer, CrowdStrike (NASDAQ:CRWD). He argued that, as a smaller player, SentinelOne should be growing at a faster pace than its larger competitors. However, it is actually underperforming in both top-line growth and profitability. The analyst attributes this underperformance partly to the company’s focus on lower-margin smaller customers and managed service providers.

The stock’s underperformance relative to the broader market and the absence of meaningful near-term catalysts also contributed to Liani’s decision to downgrade the rating.

SentinelOne Inc. (NYSE:S) is a cybersecurity company that excels in endpoint protection solutions powered by artificial intelligence. The company offers its Singularity platform, which integrates prevention, detection, response, and hunting capabilities to safeguard organizations against advanced cyber threats.

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Disclosure: None.