Shares of SentinelOne, the security software provider, experienced a significant increase in trading following the release of an optimistic research note by BTIG. Gray Powell, an analyst at BTIG, upgraded his rating for SentinelOne from Neutral to Buy and set a price target of $30. As a result, early trading witnessed a 7.5% surge in stock prices, reaching $26.70.
Powell conducted conversations with five major companies to assess the outlook for the endpoint security market. His findings indicated a noticeable rise in discussions, leading him to have a more positive outlook on the market's growth potential in 2024 compared to 2023. Additionally, Powell received consistently positive feedback on SentinelOne's performance.
The recent escalation in cyberattack volumes is expected to contribute to an increased demand for security software. Powell acknowledges this trend and believes it will drive further demand for SentinelOne's products.
Powell also expressed confidence in SentinelOne's ability to gain market share across all its core target markets. Furthermore, he showed enthusiasm for the company's new product initiatives, which encompass cloud security, data lakes, and the introduction of "Purple AI" - an artificial intelligence-powered software designed for threat-hunting, analysis, and response.
During recent quarters, SentinelOne has witnessed improvements in sales execution, leading Powell to believe that the company will meet or surpass street estimates in the future.