5 Best Cybersecurity Stocks to Buy According to Analysts

3. SentinelOne, Inc. (NYSE:S)

Number of Hedge Fund Holders: 33

Average Analyst Price Target: $30.1

Upside Potential: 30.2%

SentinelOne, Inc. (NYSE:S) is a cybersecurity provider in the US and internationally. It offers AI-powered autonomous threat prevention, detection, and response capabilities.

A total of 33 hedge funds were long SentinelOne, Inc. (NYSE:S) in the fourth quarter, with a total stake value of $908.7 million.

Morgan Stanley analysts maintained an Overweight rating and a $29 price target on SentinelOne, Inc. (NYSE:S) on March 14.

Baron Funds said the following about SentinelOne, Inc. (NYSE:S) in its fourth-quarter 2023 investor letter:

“SentinelOne, Inc. (NYSE:S) is a cybersecurity software company that specializes in endpoint protection, cloud security, and security data analytics. Shares rose on outstanding quarterly financial results and strong guidance. SentinelOne is one of the fastest growing public cybersecurity companies, with revenue expected to grow more than 46% this fiscal year. Growth has been driven by a combination of: 1) market share capture from legacy endpoint vendors that struggle to compete against SentinelOne’s AI-enabled platform; 2) an ongoing shift of Information Technology (IT) infrastructure to the cloud driving demand for cloud application protection (growing triple digits); and 3) cybersecurity vendor consolidation favoring end-to-end platforms with comprehensive security portfolios over single-point solutions. The company is also leveraging its single data store and AI capabilities to cross-sell more products into its existing customer base and increase average sale prices. Between larger deal sizes and improving operating efficiencies, we believe the company can continue to expand margins at a significant rate and begin generating positive free cash flow in the next fiscal year.”