Retail Buzz Grows Around SentinelOne Stock Amid Diverging Analyst Views On Cybersecurity Company

SentinelOne, Inc. (S) stock underperformed the broader market in Wednesday’s mid-session as traders reacted to two opposing catalysts, triggering strong retail activity.

UBS downgraded SentinelOne, an artificial intelligence-powered cybersecurity platform provider based in Mountain View, California, to ‘Neutral’ from ‘Buy’ and lowered the stock price target to $25 from $30, TheFly reported. 

At the same time, Oppenheimer initiated stock coverage with an ‘Outperform’ rating and $32 price target, a separate TheFly report said. 

UBS analysts see a more limited catalyst path through fiscal year 2026. Citing partner checks, they said win rates against CrowdStrike, Inc. (CRWD) have normalized and competitive displacements have become increasingly difficult. 

A Crowdstrike software update released in mid-July caused a global outage across Microsoft Corp. (MSFT) systems and applications, resulting in some of its customers looking elsewhere.

UBS said it still sees risk to Street estimates for SentinelOne, but much is already priced in the stock. 

On the other hand, Oppenheimer, which is bullish on SentinelOne stock, noted the significantly improved leadership team that has tightened the company’s operational execution and transformed its sales efforts. 

The firm also highlighted the non-endpoint market opportunities that reflected attractive cross-sell/up-sell and share gain opportunities. 

It said that investors underestimate the potential of SentinelOne’s recent adjustments and platform value.

S sentiment and message volume January 15, 2025,  as of 12:31 pm ET | Source: Stocktwits

On Stocktwits, sentiment toward SentinelOne stock flipped to ‘extemely bullish’ (75/100) from ‘bearish’ a day ago, with message volume spiking to ‘extremely high’ levels.

A stock watcher lamented SentinelOne stock’s underperformance on Wednesday versus the broader market. Another predicted a pullback toward $21.5 due to the downgrade.

A third recommended that fellow retailer investors buy the stock in hopes that, due to the CrowdStrike fiasco, the company will win more contracts over the year.

After losing over 19% in 2024, SentinelOne stock is down over 2% in January. At last check, the stock rose 0.51% to $21.84 versus the S&P 500 Index’s 1.56% gain.

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