SentinelOne will be a 'show-me' story as it seeks market share

Citi has lifted its price target on SentinelOne (S) to $25 from $20, despite maintaining its Neutral rating. Citi US software equity research co-head Fatima Boolani joins Catalysts to break down the move and dig into SentinelOne's latest earnings report.

"Everything we heard from SentinelOne yesterday was very much around building up the kind of anticipation and optimism around, 'Hey, this is an opportunity as an underdog of smaller scale in this market for us to rise to the occasion,'" Boolani explains. After the CrowdStrike update that caused global IT outages, SentinelOne is looking to gain more market share — especially with dissatisfied CrowdStrike customers.

"We think it's mostly going to be a show-me story here as opposed to kind of positive vibes around outsized market share capture. So we're more on the sidelines to see more evidence that they are taking more than their fair share of these disaffected customers that they are gearing up to grab," Boolani adds.

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This post was written by Melanie Riehl

Transcripción del vídeo

I know that you increase your price target on Sentinel 1 to $25 from 20 but you maintained your neutral rating to what extent is there going to be a read through from the positive results for Sentinel one even though the stock is down right now to crowd strike earnings, you know, I think this is uh definitely uh to us, reads like a David versus Goliath battle.

Everything we heard from sent one yesterday was very much around uh you know, building up the kind of anticipation and optimism around.

Hey, this is an opportunity as an underdog of smaller scale in this market for us to rise to the occasion.

But we respect the fact that the CEO while kind of laying the cards on the table didn't necessarily over extend his hand on.

Hey, we can grab customer yesterday uh and and dissatisfied customers yesterday.

So I think they've got the right pieces in place uh for Sentinel.

You know, we think it's mostly going to be a showy story here as opposed to kind of positive vibes around uh market share, outsized market share capture.

So we're, we're more on the sidelines to see more evidence that they are taking more than their fair share of these disaffected customers that they are gearing up to grab.