SentinelOne Inc. (NYSE:S) shares dropped more than 2% in premarket trading Friday after BTIG downgraded the cybersecurity company from Buy to Neutral, citing mounting competitive headwinds and elevated revenue expectations.
The firm said its recent industry checks pointed to increasing challenges from larger platform vendors in the security space. BTIG noted that Street estimates for the second half of fiscal 2026 and fiscal 2027 appeared too optimistic, prompting the brokerage to lower its 2027 annual recurring revenue forecast by 3% to $1.248 billion, versus consensus at $1.308 billion.
The analysts projected that revenue growth over the next two years would slow to low double digits, below current expectations of high-teens to 20% expansion. While SentinelOne’s valuation at 22.5x 2027 EV/FCF was not viewed as excessive, BTIG said a Neutral rating was more appropriate given the outlook.
