:max_bytes(150000):strip_icc()/INV_SentinelOneLogo_GettyImages-1239099003-561bafb7498a4c80a35f9fc1752cd4a8.jpg "SentinelOne Stock Rises After Bank of America Upgrade, New Price Target")
Key Takeaways
- SentinelOne Inc. shares advanced Wednesday after Bank of America Securities upgraded the stock and raised its price target in an overall positive report about the cybersecurity sector.
- The analysts said they were bullish on cybersecurity after a customer survey suggested fourth-quarter deal activity was strong and future sales cycles would improve.
Shares of SentinelOne Inc. (S) jumped after Bank of America Securities upgraded the stock and lifted its price target amid overall optimism about the cybersecurity industry.
BofA raised its rating to buy from neutral and increased the price outlook to $35 from the previous $26.50. The analysts called SentinelOne “one of the favorites in endpoint security.”
The analysts said the $35 valuation is justified because of the company’s risk profile based on the macro environment and IT spending conditions.
BofA’s overall positive outlook for the cybersecurity industry came as a check with its channel partners who are customers of cybersecurity products suggested companies in the sector had strong fourth-quarter deal activity, improving upon the first nine months of 2023. The partners said they expect macroeconomic conditions to improve, with better sales cycles and deal sizes ahead.
The BofA report sent shares of SentinelOne stock to its highest level since April 2022 early Wednesday. At close the share price was $30, up nearly 3.5% on the day and nearly double what SentinelOne was trading at a year ago.