TD Cowen Sees Growth Potential for SentinelOne Inc

Investing.com — TD Cowen projects that SentinelOne Inc (NYSE:S) will disrupt the $7 billion legacy antivirus market and achieve significant revenue growth by fiscal year 2026. The brokerage maintains a ‘buy’ rating on the stock, setting a target price of $35.

Market Position

SentinelOne is recognized as a leader in Gartner's Magic Quadrant for Endpoint Detection and Response (EDR) and has performed strongly in MITRE ATT&CK evaluations. According to TD Cowen, the firm is well-positioned to expand its market share.

Growth Drivers

Key factors contributing to this growth include:
– Rising win rates
– Positive new logo momentum
– Increasing customer spending

TD Cowen characterized this combination as an "exciting cocktail" for SentinelOne's growth trajectory.

Upcoming Catalysts

The brokerage expects the company's upcoming FY26 revenue outlook and first-quarter guidance for FY26 to act as significant catalysts.

Strategic Partnerships

Although SentinelOne has recently partnered with Lenovo, the world’s largest PC manufacturer, TD Cowen believes that this collaboration will not have a substantial near-term financial impact. However, it is anticipated to enhance SentinelOne's branding and visibility in the medium term.

Valuation Outlook

TD Cowen values SentinelOne at 10 times its FY26 estimated revenue, relating to its $35 price target. This suggests a 40% upside from the current trading multiple of 7 times FY26 revenue, which is a considerable discount compared to its cybersecurity peers.

Cautionary Note

The firm cautioned that if SentinelOne fails to leverage CrowdStrike's July outage or if its FY26 revenue guidance does not meet expectations, its shares could face pressure. In such a scenario, SentinelOne's valuation would reflect renewed long-term growth concerns, causing market sentiment to shift to a "show-me" mode.