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What's Going On With The Dip In SentinelOne Stock?

Benzinga · 2d ago

SentinelOne Inc (NYSE:S) shares are trading lower Thursday. The stock was briefly popping following a bullish report from Citron Research.

What To Know: The short‑seller set a $32 price target and argued the cybersecurity firm deserves a fresh revaluation.

Citron pointed to SentinelOne's role in cracking the Salt Typhoon hack, where the company traced two Chinese state‑sponsored attackers back to Cisco's training program. The firm helped uncover what's being described as the largest telecom breach in U.S. history.

“$S just cracked the Salt Typhoon hack — tracing two Chinese state attackers back to Cisco’s own training program,” Citron wrote on X. “While exposing the biggest telecom breach in U.S. history, the company completed its transformation from ‘endpoint vendor’ to full AI-native security platform.”

Citron also highlighted that more than half of SentinelOne's third‑quarter bookings came from Cloud, Data and AI, underscoring its shift from a traditional endpoint security vendor to a broader platform company.

Despite this evolution, Citron argued that the stock still trades at roughly 5x revenue, "as if it's a commodity endpoint product," and insisted the company should be rerated.

“This company must be rerated!” Citron stated, setting the $32 price target based on applying 8.5x forward revenue — described as “the LOW END of platform comps” — to fiscal 2026 estimates and adjusting for cash. This valuation would imply a $9.5 to $10 billion market cap.

“No heroics. Just valuing SentinelOne as what it already is,” Citron concluded.

S Price Action: SentinelOne shares were down 1.44% at $15.02 at the time of publication on Thursday, according to Benzinga Pro.

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