SentinelOne rises as Guggenheim starts coverage with buy rating
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SentinelOne (NYSE:S) shares rose fractionally in premarket trading on Tuesday as investment firm Guggenheim started coverage on the cybersecurity company with a buy rating, noting it is working to take back market share.
Analyst Raymond McDonough put a buy rating and a per-share price target of $18 on SentinelOne (S) shares, noting its prowess in the endpoint protection space and the fact that is "following a proven playbook to take share in its core and adjacent markets."
"Over time, we believe SentinelOne can grow into the number three player in the endpoint market, implying the company scales to over three times its size today," McDonough wrote in a note to clients.
McDonough also noted that while there has been a high level of turnover, including two former executives joining CrowdStrike (CRWD) recently, there are some risks associated with a weak macro economy, sales execution and medium-term guidance.
On Monday, Deutsche Bank downgraded SentinelOne (S), citing worries over competition in the cybersecurity space.