Goldman Sachs Boosts SentinelOne Price Target to $25 After Q2 Beat

Goldman Sachs analysts increased their price target on SentinelOne Inc (NYSE:S) to $25 from $23 while keeping a Neutral rating after the company reported better-than-expected Q2 results.

The analysts highlighted that SentinelOne's key stock driver in the coming year will be whether its pace of endpoint market share growth improves following CrowdStrike's recent outage. SentinelOne has emphasized its technology advantages, such as fewer updates due to AI-embedded models and less reliance on the kernel, as well as its significantly improved sales pipeline.

However, the company has not yet reflected this in its second-half guidance due to longer sales cycles and the early stage of pipeline conversion. SentinelOne is particularly strong in Linux-based environments, making it well-positioned for cloud module cross-selling. Despite this, the analysts maintain a Neutral stance, balancing optimism around the company's technology with challenges related to maintaining competitiveness against larger rivals while improving financial metrics like the Rule of 40.