Keith Weiss, an analyst from Morgan Stanley, maintained the Buy rating on Fortinet (FTNT – Research Report). The associated price target remains the same with $105.00.
Keith Weiss has given his Buy rating due to a combination of factors that suggest potential growth for Fortinet despite recent challenges. While Fortinet’s Q1 results were not as strong as expected, with product revenues growing slower than some competitors and subscription revenues declining, the company still managed to exceed consensus expectations in overall billings and operating margins. This indicates a strong underlying business model that can weather short-term fluctuations.
Looking ahead, Fortinet’s prospects appear promising with a significant firewall refresh anticipated, which could lead to substantial incremental product revenue. Additionally, the widespread adoption of their SD WAN solution presents an opportunity for further expansion into their SASE offerings. These factors, combined with the company’s cautious yet optimistic guidance, suggest that Fortinet is well-positioned for future growth, justifying the Buy rating.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $115.00 price target.