SentinelOne’s (NYSE:S) future is buzzing with speculation after a recent Reuters report stated that the company is exploring strategic options. Needham analyst Alex Henderson suggests that while tech giants like Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), and IBM (NYSE:IBM) might have their eyes on the cybersecurity firm, the most probable outcome might be a purchase by private equity. Henderson, who is bullish about SentinelOne, points out that many of these big names already have similar products in their arsenal.
Currently, SentinelOne’s trading metrics indicate a valuation at 5.5x EV/Sales, but a potential acquisition could see figures hovering between 7x-8x. Furthermore, If an acquisition does happen, it could spell good news for direct rival CrowdStrike (NASDAQ:CRWD), potentially giving them a stronger market hold and a better competitive edge, per Henderson’s insights.
What is the Stock Price Forecast for SentinelOne?
Turning to Wall Street, analysts have a Strong Buy consensus rating on S stock based on 10 Buys, 13 Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $17.67 per share implies 8.67% upside potential.