Cybersecurity stock SentinelOne is poised to rally nearly 30% as companies amp up their investment in automation tools, Canaccord Genuity said. Analyst T. Michael Walkley initiated coverage of the cybersecurity stock with a buy rating and $20 price target, calling SentinelOne a “next-gen leader” within the endpoint security industry. “We view SentinelOne as a long-term secular winner due to the company’s positioning as a data-driven security platform, which is facilitated by its roots in Endpoint Security and a strong position in the midmarket enterprise market,” he said in a Thursday note to clients. S YTD mountain SentinelOne’s year-to-date performance Shares rose about 3% premarket, positioning the stock to build on 8% gains so far this year. Last year, shares tumbled more than 71% as growth and the broader tech industry took a hit in a difficult macro environment. But SentinelOne is well positioned to capitalize on a shifting backdrop for resource-strapped global enterprises that requires heightened automation with limited human intervention, Walkley said. Some of SentinelOne’s advantages include a “superior autonomous AI engine” and data analytics tools that can help customers better analyze data and improve detection and prevention efforts, he added. “As a result, we anticipate long-tailed adoption driving sustained revenue growth and with leverage in the model, we believe the company has a clear path to achieving strong long-term profitability,” Walkley wrote. The firm’s $20 price target suggests shares stand to gain as much as 27% from Wednesday’s close. — CNBC’s Michael Bloom contributed reporting.
