Latest news with #Liani
Yahoo
7 days ago
- Business
- Yahoo
SentinelOne's Profitability And Growth Trajectory Less Promising Than Competitors: Analyst
SentinelOne, Inc. (NYSE:S) shares are trading lower on Thursday after its disappointing post-market Q1 earnings release the previous day. The cybersecurity company reported revenue of $229.03 million, beating the consensus estimate of $228.35 million. Adjusted earnings of two cents per share were in line with analyst estimates. The company lowered its full-year 2026 revenue guidance from $1.007 billion to a range of $996 million to $1.001 billion. Analysts were expecting full-year revenue of $1.01 analysts downgraded/revised the price forecast for the stock. B of A Securities analyst Tal Liani downgraded the company from Buy to Neutral, cutting the price forecast from $24 to $21. The analyst writes that the endpoint security market remains appealing but has three main concerns. SentinelOne's results have been uninspiring for several quarters now, marked by two consecutive quarters of reduced guidance, says Liani in an analyst note. The analyst writes that they previously viewed the guidance cut as a result of the new CFO resetting expectations but now see deteriorating business trends. The analyst raises concerns about SentinelOne's growth rate relative to its size and profitability compared to competitors like CrowdStrike. Despite similar growth rates, it operates from an 80% smaller revenue base and carries approximately 650 basis points lower profitability when adjusted for scale. The analyst also highlights that the stock's performance has lagged significantly, underperforming the NASDAQ by 1000 basis points year-to-date and 1860 basis points over the past 12 months. Liani anticipates challenges in meaningfully improving margins to persist, with the company focusing on smaller customers and MSPs. Goldman Sachs analyst Gabriela Borges revised the price forecast from $23.50 to $21.50 while maintaining a Neutral rating. The analyst writes that she believes SentinelOne is experiencing more varied business trends for two main reasons. First, their growth strategy relies heavily on acquiring new customers, where deal activity has slowed more significantly than existing clients. Second, they face persistent competitive pressure. Borges says that while she maintains a positive view of SentinelOne's core technology, this competitive environment, with vendors offering greater platform scale, remains an overhang. The analyst revised the revenue estimates for FY26, FY27, and FY28 to $997 million (from $1.008 billion), $1.202 billion (from $1.227 billion), and $1.413 billion (from $1.459 billion), respectively, owing to intense competition and the challenge of balancing revenue growth with profitability. Apart from this, several other analysts downgraded the stock, including: JP Morgan analyst Brian Essex downgraded the rating from Overweight to Neutral and lowered the price forecast from $22 to $19. Wells Fargo analyst Andrew Nowinski downgraded the stock from Overweight to Equal-Weight and lowered the price forecast from $22 to $18. Price Action: S shares are trading lower by 11.0% to 417.50 at last check Thursday. Read Next:Photo by Tada Images via Shutterstock Date Firm Action From To Mar 2022 Barclays Maintains Overweight Feb 2022 DA Davidson Initiates Coverage On Buy Jan 2022 Wolfe Research Initiates Coverage On Outperform View More Analyst Ratings for S View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? SENTINELONE (S): Free Stock Analysis Report This article SentinelOne's Profitability And Growth Trajectory Less Promising Than Competitors: Analyst originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
21-05-2025
- Business
- Business Insider
Analysts Are Bullish on Top Technology Stocks: CCC Intelligent Solutions Holdings (CCCS), Cisco Systems (CSCO)
There's a lot to be optimistic about in the Technology sector as 3 analysts just weighed in on CCC Intelligent Solutions Holdings (CCCS – Research Report), Cisco Systems (CSCO – Research Report) and Aeva Technologies (AEVA – Research Report) with bullish sentiments. Confident Investing Starts Here: Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter CCC Intelligent Solutions Holdings (CCCS) Bank of America Securities analyst Michael Funk maintained a Buy rating on CCC Intelligent Solutions Holdings yesterday and set a price target of $11.00. The company's shares closed last Wednesday at $9.03, close to its 52-week low of $8.83. According to Funk is currently ranked with 0 stars on a 0-5 stars ranking scale, with an average return of -8.0% and a 42.9% success rate. Funk covers the Technology sector, focusing on stocks such as Zoom Video Communications, Weave Communications, and Bentley Systems. The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CCC Intelligent Solutions Holdings with a $11.67 average price target, which is a 29.4% upside from current levels. In a report issued on May 6, William Blair also maintained a Buy rating on the stock. Cisco Systems (CSCO) Bank of America Securities analyst Tal Liani reiterated a Buy rating on Cisco Systems today and set a price target of $76.00. The company's shares closed last Wednesday at $61.29. According to Liani is a 5-star analyst with an average return of 10.1% and a 57.2% success rate. Liani covers the Technology sector, focusing on stocks such as CrowdStrike Holdings, Palo Alto Networks, and CommScope Holding. Currently, the analyst consensus on Cisco Systems is a Strong Buy with an average price target of $69.60, which is a 12.9% upside from current levels. In a report issued on May 9, Cleveland Research also upgraded the stock to Buy. Aeva Technologies (AEVA) In a report released today, Sujeeva De Silva from Roth MKM maintained a Buy rating on Aeva Technologies, with a price target of $17.00. The company's shares closed last Wednesday at $14.45. According to Silva is a 5-star analyst with an average return of 22.8% and a 51.1% success rate. Silva covers the Technology sector, focusing on stocks such as Credo Technology Group Holding Ltd, Advanced Micro Devices, and indie Semiconductor. Aeva Technologies has an analyst consensus of Strong Buy, with a price target consensus of $8.88, representing a -36.3% downside. In a report issued on May 12, Craig-Hallum also maintained a Buy rating on the stock.
CNBC
07-05-2025
- Business
- CNBC
Goldman and Bank of America see 30%-plus upside for this under-the-radar AI play
Two major Wall Street shops singled out Arista Networks as a buy, even as shares pull back in the wake of earnings. The cloud computing company on Tuesday narrowly topped LSEG first-quarter revenue estimates, but managed a solid beat on the bottom line. Arista earned 65 cents per share, excluding items, on revenue of $2 billion. Analysts predicted it would earned 59 cents per share on $1.97 billion in revenue. Shares of Arista have tumbled 18% in 2025, and were down more than 7% on Wednesday. ANET 1Y mountain ANET 1Y chart Goldman Sachs and Bank of America both reiterated their buy ratings on the stock. However, Goldman Sachs analyst Michael Ng lowered his 12-month target price to $115 from $130, citing uncertainty from tariffs in the latter half of the year. Ng's forecast represents a 27% upside for Arista. Ng expects Arista will continue to benefit from the artificial intelligence trade, which will be a catalyst for the stock. "ANET highlighted momentum in AI demand & reiterated its expectations to generate at least $750 mn in back-end AI switching revenue in 2025 across its four major AI cluster projects, with 3/4 already in production; the company expects to see strong pull through of front-end AI switching (~1:1) but acknowledged the difficulty in identifying what products are deployed in the front-end," he wrote. While tariff uncertainties certainly linger for the stock, most of Arista's production volume is in Mexico, which is compliant with the current U.S.-Mexico-Canada trade agreement, or USMCA. Ng added that Arista's full-year outlook appears conservative given its positive momentum in the cloud computing business. Bank of America analyst Tal Liani also highlighted Arista's potential in cloud computing as a major tailwind. Liani's $130 price target corresponds to a potential 43% rally from Arista's Tuesday close. "Putting aside the tariff impact, we believe Arista proves repeatedly that it can successfully compete with white box switching and Nvidia's solutions, with a stable position within its key Cloud Titan customers, and a leading position with Baby Clouds and Enterprises," Liani wrote. Specifically, Arista's key cloud titan and hyperscaler customers, Meta and Microsoft, have announced plans to respectively increase capital expenditures spending by 70% and 44% this year. "For next year, we expect Meta to slow meaningfully but Microsoft should ramp its Ethernet back-end (AI) deployments, benefiting Arista and potentially offsetting some of Meta's rationalization," the analyst added.
Globe and Mail
25-03-2025
- Business
- Globe and Mail
Bank of America Says CrowdStrike Earns a ‘Buy' Rating as Recovery Gains Momentum
In this digital age, in which cybersecurity threats are rapidly evolving, companies that provide digital protection are more important than ever. Valued at $89.8 billion, CrowdStrike Holdings (CRWD) is one of today's most well-known cybersecurity companies. While the stock surged 147.2% in 2023, 2024 was a more difficult year, with the stock gaining just 38.6%. A faulty software update in July caused roughly 8.5 million Microsoft Windows systems to crash worldwide. CrowdStrike quickly identified and resolved the issue, and it has implemented recovery measures to regain customer's trust. Recently, Bank of America Securities analyst Tal Liani reaffirmed CrowdStrike's 'Buy' rating, citing the company's key strategic and financial initiatives aimed at strengthening its market position following the July outage. CRWD stock is up nearly 9% in the year to date, compared to the S&P 500 Index's ($SPX) dip of 2%. Let's find out if Crowdstrike is a buy now. Crowdstrike: BofA Analyst Is Impressed With the Recovery Strategy Following discussions with CrowdStrike's CFO and chief accounting officer, Liani outlined several steps the company has taken to recover from the outage and drive long-term growth. These include the introduction of a Customer Commitment Package and the expansion of Falcon Flex deals, which aim to rebuild customer trust and increase adoption rates. Management expects a rebound in net new annual recurring revenue (nnARR) in the second half of the year, driven by increased demand for Cloud Security and Identity Security. CrowdStrike is well-positioned to capture market share as people increasingly rely on cybersecurity solutions in the face of rising threats. The analyst noted that one of the most promising indicators of CrowdStrike's future success is the widespread use of Falcon Flex deals. These agreements, which offer customers adaptable, scalable security solutions, have gained significant traction. Notably, 60% of Falcon Flex dollars have already been spent ahead of schedule, indicating strong customer engagement and potential growth at contract renewal. As management emphasized during the Q4 fiscal 2025 earnings call, the total value of Falcon Flex deals reached $2.5 billion, a tenfold increase year-over-year Beyond its recovery efforts, Liani stated that CrowdStrike is prioritizing innovation and expansion to ensure long-term growth. The introduction of CharlotteAI, along with the company's robust Cloud Security and Identity Security offerings, is expected to play an important role in its growth strategy. According to management, customers have reported a significant reduction in manual workload since using CharlotteAI. Notably, one European financial services firm stated that Charlotte AI summarizes security activity in 10 to 15 seconds, whereas previously it took 20 to 30 minutes. This tangible AI outcome is driving Falcon's adoption as an AI-native security operations center (SOC). CrowdStrike hopes that by implementing these new platform pillars, it will gain a competitive advantage and strengthen its position in the industry. Liani believes that despite the temporary setbacks, CrowdStrike's proactive approach and strategic investments will drive accelerated growth in the second half of the year. With growing customer adoption of its security solutions and ongoing innovation, the company is well-positioned for long-term success. He has set a price target of $420, implying 13% upside from current levels. A Strong End to Fiscal 2025 CrowdStrike's recent fourth quarter and fiscal 2025 results indicate that the company is recovering well. In Q4, the company reported a 25% increase in revenue to $1.06 billion, with adjusted earnings per share (EPS) rising 8.4% to $1.03. Both revenue and earnings exceeded analysts' expectations. For the full fiscal year, revenue increased by 29% to $3.95 billion, while EPS increased by 27.1% to $3.93. The company's average recurring revenue (ARR) increased 23% to $4.24 billion. The company generated $1.07 billion in free cash flow. At the end of Q4, the company had $4.3 billion in cash and cash equivalents. For fiscal 2026, management expects a revenue increase of 18% to 21% in fiscal 2026, while earnings per share may fall by 12% to 15%. Management reaffirmed that the company's AI-powered security solutions will continue to drive growth toward its $10 billion ARR goal by fiscal 2031. Overall, analysts covering CRWD stock expect revenue to grow by 21% in fiscal 2026, while earnings may fall by 12.5%. Analysts predict that revenue will increase by 21.9% in fiscal 2027, followed by an earnings increase of 33.3%. CRWD stock is currently trading at a premium of 105 times forward earnings for 2026. Is CRWD Stock a Buy Now, According to Wall Street? Wall Street maintains an average rating of ' Strong Buy ' on CRWD stock. Of the 45 analysts that cover the stock, 32 rate it as a 'Strong Buy,' three as a 'Moderate Buy,' nine as a 'Hold,' and one as a 'Strong Sell.' The analysts' average price target of $407.10 suggests that the stock could rise by up to 9.4% from current levels. The highest target price is $475, implying that the stock could gain 27% over the next 12 months. The Key Takeaway CrowdStrike remains a compelling buy for long-term investors willing to take on the short-term volatility. Starting with a small position and adding more shares on pullbacks could be a good strategy. The global cybersecurity industry is expected to generate $271.9 billion by 2029. CrowdStrike's strong market position, AI-driven security model, and subscription revenue stream make it an appealing growth stock in the cybersecurity industry. However, given the company's high valuation, risk-averse investors may prefer to wait for a better entry point.
Yahoo
28-02-2025
- Business
- Yahoo
Why AI Stocks Meta Platforms, CrowdStrike, and Broadcom Are Rebounding Today
After struggling over the past week, large artificial intelligence stocks are in the green today, ahead of Nvidia's earnings report, which is due out after the market closes. Given the importance of Nvidia to the entire AI trade, the company's earnings results, guidance, and comments on broader AI trends have the potential to influence the entire sector and perhaps the broader market as well. Shares of Meta Platforms (NASDAQ: META) traded 3.5% higher as of 12:52 p.m. ET today. Shares of CrowdStrike (NASDAQ: CRWD) and Broadcom (NASDAQ: AVGO) both traded 5% higher at that time. Without question, investors are turning their attention to AI chip king Nvidia and the company's release of its fiscal year fourth-quarter and full-year earnings results after the market closes. Wall Street analysts on average project earnings per share of $0.85 and quarterly revenue to have grown 72% year over year to $38.1 billion. However, the market will also be paying close attention to CEO Jensen Huang's comments on a variety of topics critical to the broader AI ecosystem, including the emergence of DeepSeek and its broader implications on AI capital spending and how easy and inexpensive it eventually could be to replicate large language models. Furthermore, analysts will also likely question management about the Trump administration's potential policies regarding export controls on chips and how they may impact the company if they go into effect. In company-specific news, Meta might be in talks to build a new data center campus to house its artificial intelligence projects. The cost of the campus could surpass $200 billion, according to The Information, which first reported the news, citing anonymous sources. It seems that almost every other day, Meta is discussing some new massive AI infrastructure project, although a spokesperson from the company reportedly denied these rumors, calling them "pure speculation." Bank of America analyst Tal Liani reiterated his buy rating on CrowdStrike today and increased his price target to $420. Liani wrote that he expects the company to meet or beat consensus estimates when CrowdStrike reports its earnings on March 4. Liani believes the company's core business will continue to show growth, while there could be increased revenue from cross-selling and up-selling. While there wasn't a ton of news about Broadcom today, the company did announce yesterday the release of new technology that enables further interoperability between AI data centers. Nvidia's latest results clearly could be an inflection point for the AI sector. After dealing with some adversity in 2025, good results and guidance from Nvidia and positive comments from Huang could get AI stocks back on track. Meanwhile, bad results and comments that concern investors could mean further declines ahead. That said, these are short-term concerns. Longer term, AI stocks are still vulnerable to the higher-for-longer rate environment and potentially concerns over a weakening consumer and potential recession, although a recession could also bring further rate cuts. Trading at 90 times forward earnings, I don't see any need for investors to jump into CrowdStrike, despite the company running a solid business. Broadcom and Meta look a little more appealing these days, trading at nearly 34 and 27 times forward earnings estimates, respectively. Broadcom's custom chip business and Meta's ability to monetize AI have been highlighted by many analysts. I don't own any of these large AI stocks right now, but I think these are solid and more affordable options over peers. Before you buy stock in Meta Platforms, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Meta Platforms wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $776,055!* Now, it's worth noting Stock Advisor's total average return is 892% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of February 24, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Bank of America is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America, CrowdStrike, Meta Platforms, and Nvidia. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. Why AI Stocks Meta Platforms, CrowdStrike, and Broadcom Are Rebounding Today was originally published by The Motley Fool Sign in to access your portfolio
