Fortinet: Solid RPO Growth Offsets Supply-Chain Risks; Hold Rating and $115 Price Target Reaffirmed

In a report released today, Shrenik Kothari from Robert W. Baird maintained a Hold rating on Fortinet, with a price target of $115.00.

Shrenik Kothari has given his Hold rating due to a combination of factors reflecting both solid fundamentals and emerging risks for Fortinet. He notes that remaining performance obligations and current RPO are growing at a healthy double-digit pace, and that a meaningful portion of future revenue is already contracted, underscoring the durability of Fortinet’s subscription and support model while justifying an unchanged $115 price target.

At the same time, Kothari highlights rising inventory purchase commitments and supply chain constraints, particularly around components such as memory chips, which increase execution and balance sheet risk. He also points to the high concentration of hardware manufacturing in Taiwan, which, despite ongoing diversification efforts, leaves Fortinet exposed to geopolitical and operational disruptions, leading him to conclude that risk and reward are broadly balanced at current levels, supporting a Hold rating rather than a more aggressive stance.

Kothari covers the Technology sector, focusing on stocks such as JFrog, Cloudflare, and Check Point. According to TipRanks, Kothari has an average return of 17.1% and a 63.79% success rate on recommended stocks.

In another report released on May 8, Susquehanna also assigned a Hold rating to the stock with a $115.00 price target.