DA Davidson Labels SentinelOne (S) Undervalued but Maintains Cautious Stance Pending Growth Stabilization

SentinelOne Inc. (NYSE:S) is 1 of the AI stocks nether $20 to bargain now. On December 5, DA Davidson lowered the firm’s terms people connected SentinelOne to $16 from $19 and kept a Neutral standing connected the shares. The steadfast highlighted that the institution delivered a beardown FQ3 2026 performance, with its $1.055 cardinal successful yearly recurring gross surpassing the statement estimation of $1.051 billion. DA Davidson noted that the banal is presently undervalued, but an upward displacement successful valuation is improbable until determination is wide grounds that maturation has stabilized.

In the said 3rd quarter, SentinelOne Inc. (NYSE:S) delivered $259 cardinal successful revenue, which represented a 23% year-over-year increase. Key maturation indicators remained robust, with ARR climbing 23% to $1.055 cardinal and RPO surging 35% to scope $1.3 billion. International enlargement was a large highlight, with gross from extracurricular the US increasing 34% to relationship for 40% of the full business.

SentinelOne continues to usage its Purple AI and Flex licensing models to thrust level consolidation. Purple AI has seen a accelerated 40% connect complaint among caller licenses, portion the Flex exemplary is enabling larger, multi-solution deals by allowing customers to devour the Singularity level much dynamically. During the quarter, the institution closed the $225 cardinal acquisition of Observo AI, adding a policy-driven information pipeline to its stack, and completed the acquisition of Prompt Security for $180 million.

For the afloat FY2026, SentinelOne Inc. (NYSE:S) expects full gross of ~$1.001 billion, which would beryllium a 22% year-over-year growth.

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 crossed an organization’s endpoints, unreality workloads, and individuality credentials.

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.