Cybersecurity company, SentinelOne (NYSE: S) rose sharply higher in morning trading on Monday after Morgan Stanley analyst Hamza Fodderwala upgraded the stock to a Buy from a Hold and raised the price target to $20 from $15. The analyst’s price target implies an upside potential of 28.5% at current levels.
The analyst pointed out that even with the company’s soft outlook and mixed Q1 earnings, the market is “now mispricing the inherent value of SentinelOne as a long-term share gainer and the potential for meaningful margin upside.”
Fodderwala added that with the stock down by more than 10% in the past month, the risk and reward proposition for the stock is more favorable.
The analyst commented, “While recent execution missteps have shaken investor confidence, we think the intrinsic value of the asset is much higher than the market ascribes and see a compelling risk-reward with valuation now at a 50% discount to peers on a growth-adjusted EV-to-Sales basis.”
Overall, analysts are cautiously optimistic about SentinelOne stock with a Moderate Buy consensus rating based on 11 Buys and 13 Holds.
