Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on FTNT stock, giving a Hold rating on February 5.
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Shrenik Kothari has given his Hold rating due to a combination of factors impacting Fortinet’s financial outlook. Although the company reported a 17% year-over-year revenue increase in the fourth quarter, there are concerns about the future organic billings growth, influenced by cautious federal procurement and macroeconomic factors. These concerns have led to a more conservative guidance, which suggests a tempered outlook despite solid product growth.
Additionally, while Fortinet is seeing early success in product refresh cycles and momentum in SASE and SecOps cross-selling, the timing of these upgrades and the execution of their strategy require careful observation. The recent CFO transition adds another layer of uncertainty, as leadership changes can affect financial strategies and operations. These combined elements suggest a hold stance, reflecting both the potential and the challenges the company faces in the near term.