Deutsche Bank Adjusts Ratings on Cybersecurity Stocks

Investing.com — Deutsche Bank (ETR:DBKGn) made adjustments to its ratings on cybersecurity stocks on Tuesday, upgrading SentinelOne (NYSE:S) and downgrading Okta (NASDAQ:OKTA).

Shares in SentinelOne rose 2.3% in premarket trading Tuesday, while Okta fell 1.5%.

Upgrade for SentinelOne

SentinelOne was raised to Buy from Hold, with a new price target set at $32 from the previous $25. The upward revision comes as SentinelOne is seen benefiting from market dynamics and a strong product offering, especially following the CrowdStrike-induced outage in the endpoint market on July 19.

> “Our channel conversations have definitively up-ticked post the July Windows outage which is creating more opportunities along with a platform and technology story that is only getting better,” Deutsche analysts led by Brad Zelnick said in a note.

The analysts highlighted that while benefits will likely accrue over time, they see a path for SentinelOne to capitalize on its platform strengths centered on AI-powered technology and high-growth sub-segments as customers evaluate vendor differences and concentration risks.

Analysts expect SentinelOne's net new annual recurring revenue (NNARR) in fiscal year 2026 (FY26) to grow by 15% year-over-year, surpassing the consensus estimate of 10%.

Downgrade for Okta

In contrast, Okta's rating was downgraded to Hold from Buy due to a mixed reception from customers and competitive challenges.

Zelnick and his team suggest that Okta may experience a longer road to value realization, making it potentially more attractive later next year. Concerns include macro-driven headwinds, security breaches, and competition, which could impact customer expansion and new acquisitions.

Consequently, analysts believe Wall Street estimates for the stock “are likely too high for next year,” leading them to reduce their FY26E Subscription revenue growth estimate for Okta to 8% year-over-year compared to the Street's 10.5%.

Alongside the downgrade, Okta's price target was lowered to $85 from $115.