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Wells Fargo analysts downgraded SentinelOne (NYSE:S) stock to Equal Weight from Overweight with a price target of $18 per share.
The analysts made a move to the sidelines on growing concerns of declining demand trends. Reseller trends “significantly downticked,” the analysts said, as the checks showed that 43% of resellers reported Below Plan results and just 10% Above Plan.
The analysts are also worried about recent executive departures after Daniel Bernard and Raj Rajamani recently joined Crowdstrike (NASDAQ:CRWD), after previously serving as the Chief Marketing Officer and Chief Product Officer, respectively, at SentinelOne.
“Both executives are highly regarded in the industry, as a number of channel partners we have spoken with have cited the departures as concerning,” the analysts wrote in a client note.
These two factors are key reasons why they downgraded the stock, as both “will make it more difficult to reach material profitability.”
SentinelOne shares are down 4.6% in pre-market Tuesday.
