SentinelOne (S) is likely to face challenges ahead, although the endpoint market continues to be an "attractive domain," BofA Securities said in a Thursday note.
The company has been reporting "uninspiring" results for a few quarters now and has lowered its fiscal 2026 outlook for the second consecutive quarter, analyst Tal Liani wrote.
SentinelOne attributed the fiscal 2026 guidance cut to "macro uncertainty and deal fluctuations," the analyst said.
Additionally, Liani said that the business scenarios look "weaker" as net new annual recurring revenue fell 26% in fiscal Q1 from a year earlier.
BofA Securities downgraded SentinelOne to neutral from buy due to "weak trends and lackluster guidance" and lowered its price target to $21 from $24.
Shares of the company were down 10% in recent Thursday trading.
Price: 17.65, Change: -2.02, Percent Change: -10.27