Morgan Stanley Cautious on SentinelOne (S) Despite AI Growth, Revenue Beat Due to CFO Transition, Enterprise Sales Cycles

Core Insights - SentinelOne Inc. is recognized as a promising low-priced technology stock by analysts, with recent price target adjustments from Morgan Stanley and Wedbush reflecting mixed sentiments about the company's future performance [1][2]. Financial Performance - For FQ3 2026, SentinelOne reported an annual recurring revenue (ARR) exceeding $1 billion, specifically reaching $1,055.3 million, which represents a 23% year-over-year increase [3]. - Total revenue for the same quarter grew by 23% to $258.9 million, up from $210.6 million in the previous year [3]. - The company projects revenue of $271 million for FQ4 and anticipates total revenue of around $1 billion for the full fiscal year 2026 [3]. Analyst Ratings and Price Targets - Morgan Stanley lowered its price target on SentinelOne to $18 from $20 while maintaining an Equal Weight rating, citing optimism about revenue performance but caution regarding a CFO transition and conservative management outlook [1]. - Wedbush also reduced its price target to $20 from $23, keeping an Outperform rating, noting that while the company beat expectations, a softer forecast is overshadowing its strong platform momentum [2]. Company Overview - SentinelOne operates as a cybersecurity provider, offering an AI-powered autonomous threat prevention, detection, and response platform to combat various cyber threats [4].