Cybersecurity: Adjust PO’s Across Cybersecurity to anchor to current environment

Research evidence excerpt

Cybersecurity: Adjust PO’s Across Cybersecurity to anchor to current environment

Automation and AI Support a Stronger Growth Outlook

SentinelOne (S): We reiterate our Buy rating and raise our PO to $22 from $20. Our

new PO is based on 6.0x CY2027E EV/Sales, up from 5.0x previously, reflecting broader

multiple expansion across AI-exposed security companies and our confidence in the

company’s ability to drive accelerating growth, improving margins, and increasing

relevance within enterprise security architectures. The company’s Singularity platform

differentiates through automation, autonomous threat detection, and AI driven workflow

capabilities that help organizations improve security outcomes while reducing

operational complexity. As enterprises look to consolidate security tools and leverage AI

to address growing threat volumes, we believe SentinelOne’s technology leadership and

improving execution support a more sustainable growth outlook than currently reflected

in its valuation.

Durable Growth Story with Less Room for Error

Crowdstrike: We reiterate our Neutral rating but raise our PO to $230 from $187.5,

based on 32x CY2027E EV/Sales, up from 31x CY26E EV/Sales previously. This reflects a

more constructive sector valuation framework, balanced by elevated expectations and a

premium valuation relative to peers. CrowdStrike remains one of the best positioned

vendors in security, with leadership across endpoint, cloud, identity, and security

operations, with ongoing adoption of AI-powered capabilities and platform consolidation

supporting a durable growth outlook. We believe these strengths are increasingly

reflected in the stock’s valuation, which remains among the highest across software and

security.

Exhibit 2: Comps table