SentinelOne's (S) acceleration in cloud, data, and AI security, and non-endpoint products representing over 50% of its total annual recurring revenue, are both "encouraging" signs, UBS analysts said in a Thursday note.
Analysts said that the company's Q2 results were "generally strong," with its net new annual recurring revenue and revenue both beating investor expectations.
UBS said that while the company's tone on the demand environment in Q2 was modestly better than Q1, its peers indicated a higher level of acceleration.
Relative to its peers, SentinelOne shares are inexpensive, but the lack of a distinct improvement to the annual recurring revenue outlook gives cause for some caution, the analysts said.
UBS retained a neutral rating on the stock and increased its price target to $24 from $16.
Price: $21.17, Change: $-1.55, Percent Change: -6.80%