Jefferies Raises SentinelOne Price Target to $24, Citing 4.5x 2027 Revenue
JEF•Jefferies raised SentinelOne's price target to $24 from $20, citing attractive valuation at 4.5x estimated 2027 revenue and stronger margin expansion potential. Analysts project $41M in Q1 net new ARR, 24% year-over-year growth, with seasonal trends and AI security momentum potentially boosting ARR to $43M–$44M.
1. Price Target Increase
Jefferies lifted its price target on SentinelOne to $24 from $20, noting the stock's valuation at roughly 4.5 times estimated calendar 2027 revenue and highlighting margin expansion potential under the new financial leadership.
2. Q1 ARR Expectations
Consensus forecasts call for $41 million in Q1 net new ARR, representing 24% year-over-year growth, while stronger-than-seasonal survey data could push ARR to approximately $43 million–$44 million if demand trends hold.
3. Fiscal 2027 Growth Path
Management expects around 50% of annual NNARR in the first half of fiscal 2027, up from 42% last year, but consensus implies a deceleration in growth later in the year, leaving room for potential outperformance.
4. AI Momentum and Margin Outlook
SentinelOne’s Prompt Security AI offering more than doubled sequential ARR last quarter, and consensus calls for a 2.3% non-GAAP operating margin in Q1, with further expansion expected through operational efficiencies, AI-driven productivity and new CFO leadership.
