03:15 PM EDT, 05/29/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our recommendation on shares of S to Hold from Buy, and trim our target price to $19 from $21, based on a EV/S of 5.5x our FY 26 (Jan.) sales forecast of $999M, below its three-year average of 7.5x and cybersecurity peers. The multiple considers the company's product strengths and rising platform adoption, offset by a highly competitive landscape with large, successful peers, and its weaker profitability profile. Q1 results were mixed as the company delivered a narrow top-line beat and non-GAAP EPS in line with consensus. S also lowered its full-year sales guidance on more conservatism factored into the outlook, and more pronounced pauses in deal flows and decision making with customers in April. We note weaker-than-expected net new annual recurring revenue (ARR) adds, although traction in SIEM and AI solutions are driving higher average ARR deals. We believe S will continue to benefit from robust enterprise investments in security, but see limited upside on its decelerating growth profile.