Adam Borg, an analyst from Stifel Nicolaus, maintained the Hold rating on Fortinet (FTNT – Research Report). The associated price target was raised to $115.00.
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Adam Borg’s rating is based on Fortinet’s mixed financial performance and strategic outlook. While the company showed strong revenue growth and exceeded expectations in several key metrics such as gross margin and EPS, there were areas of concern that tempered a more bullish rating. Specifically, the company’s operating margin fell below consensus, and cash flow metrics did not meet expectations, indicating potential challenges in financial efficiency.
Despite these concerns, Fortinet’s solid results and its strategy to leverage upcoming firewall refresh opportunities and cross-sell newer services like SASE and SecOps suggest a promising growth potential. The alignment of FY25E billings with consensus and revenue guidance coming in above expectations further supports a positive long-term outlook. Thus, Borg’s Hold rating reflects a balanced view of both the positive growth prospects and the financial challenges that Fortinet faces.
According to TipRanks, Borg is a 5-star analyst with an average return of 16.6% and a 76.67% success rate. Borg covers the Technology sector, focusing on stocks such as Fortinet, Palo Alto Networks, and Okta.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $115.00 price target.