11:35 AM EDT, 08/26/2024 (MT Newswires) -- SentinelOne ( S ) is expected to benefit from CrowdStrike Holdings' ( CRWD ) major outage but the impact has been "very modest" so far, Wedbush Securities said in a Monday note.

The company is set to release its Q2 results on Tuesday and according to Wedbush's channel and partner checks, the CrowdStrike incident is expected to boost SentinelOne's ( S ) sales and win rate.

SentinelOne ( S ) is likely to "win a greater proportion of new business or win over former CrowdStrike disgruntled customers," according to feedback from Wedbush's partner checks.

However, Wedbush flagged delayed deals in the July quarter for all security vendors as short-term sales cycles have been dragged out after the IT incident led customer to re-eveluate their options.

"We did not hear of any materially incremental tailwind for the July quarter and a very minor tailwind for the upcoming October quarter," Wedbush said, noting that it expects SentinelOne's ( S ) Q2 earnings call to have a positive tone due to the potential tailwind from the CrowdStrike outage.

Wedbush Securities raised its price target on SentinelOne's ( S ) stock to $30 from $20 and maintained its outperform rating on the company.

Price: 25.09, Change: -0.17, Percent Change: -0.67