Investing.com — TD Cowen says sentinelone Inc (NYSE Inc is set to disrupt the $7 billion legacy antivirus market and deliver strong revenue growth by fiscal 2026 as it maintained its “buy” rating on the stock with a price target of 35 dollars.
The cybersecurity firm, recognized as a leader in Gartner (NYSE:)'s Endpoint Detection and Response (EDR) Magic Quadrant and with strong performance in MITER ATT&CK assessments, it is well positioned to expand its market share, according to the note.
Key growth drivers include rising success rates, positive momentum from new logos and increased customer spending, which TD Cowen called an “exciting cocktail” for SentinelOne's growth trajectory.
The brokerage expects the company's upcoming revenue outlook for FY26, as well as guidance for the first quarter of FY26, to act as key catalysts.
While the company recently partnered with Lenovo, the world's largest PC maker, TD Cowen noted that the collaboration is unlikely to have a significant financial impact in the near term. However, the deal is expected to strengthen SentinelOne's brand and visibility in the medium term.
TD Cowen values SentinelOne at 10 times its estimated FY26 revenue, corresponding to its $35 price target. This implies a 40% increase from its current trading multiple of 7x FY26 revenue, a steep discount compared to its cybersecurity peers.
However, the company warned that if SentinelOne is unable to capitalize on CrowdStrike's (NASDAQ ) disruption in July or if its FY26 revenue guidance falls short, its stock could remain under pressure.
“SentinelOne's valuation would then reflect revived concerns about LT's growth as sentiment returns to 'show me' mode,” the note added.
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