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

20 hours ago 4

Maham Fatima

Wed, December 31, 2025 astatine 10:33 AM CST 2 min read

SentinelOne Inc. (NYSE:S) is 1 of the best debased priced exertion stocks to bargain according to analysts. On December 5, Morgan Stanley lowered the firm’s terms people connected SentinelOne to $18 from $20 with an Equal Weight standing connected the shares. The steadfast expressed optimism regarding the company’s $3 cardinal gross bushed and the show of its AI and unreality segments. However, Morgan Stanley remains cautious owed to the upcoming CFO modulation and management’s blimpish outlook connected longer woody cycles successful the endeavor market.

On the aforesaid day, Wedbush besides trimmed the firm’s terms people connected SentinelOne to $20 from $23 portion keeping an Outperform standing connected the shares. Despite delivering a apical and bottommost enactment bushed successful FQ3 2026, SentinelOne’s beardown level momentum is being masked by a softer-than-expected forecast. The steadfast suggested that the company’s prudent attack to the macro clime is resulting successful a guidance scope that fails to bespeak its underlying demand.

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

Earlier connected December 4, SentinelOne Inc. (NYSE:S) reported that it surpassed $1 cardinal successful ARR for FQ3, reaching $1,055.3 million, which was a 23% summation year-over-year. Total gross besides grew by 23% to $258.9 million, up from $210.6 cardinal successful the erstwhile year. For FQ4, the institution projects gross of $271 million, portion for the afloat FY2026, full gross is expected to scope astir $1 billion.

SentinelOne Inc. (NYSE:S) operates arsenic a cybersecurity supplier successful the US and internationally. The company’s Singularity Platform delivers an AI-powered autonomous menace prevention, detection, and effect capabilities for extortion against a spectrum of cyber threats.

While we admit the imaginable of S arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.