In a report released yesterday, Adam Borg from Stifel Nicolaus maintained a Hold rating on Fortinet, with a price target of $85.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Adam Borg has given his Hold rating due to a combination of factors surrounding Fortinet’s current market position and future prospects. Although Fortinet reported strong financial results for the second quarter of fiscal year 2025, with impressive year-over-year growth in billings, revenue, and product revenue, there are concerns about the sustainability of this growth. The company’s management indicated that a significant portion of the anticipated firewall refresh opportunity, expected to conclude by fiscal year 2026, is already 40%-50% complete, which may limit future growth potential.
Additionally, there are signs of softness in Fortinet’s services sector and some customer churn, raising questions about the company’s ability to maintain its growth trajectory. These mixed signals, combined with the uncertainty surrounding the attachment of SASE/SecOps solutions, have led to a cautious outlook. As a result, Adam Borg has opted to maintain a Hold rating, reflecting a balanced view of the company’s current strengths and potential challenges.
In another report released today, TD Cowen also downgraded the stock to a Hold with a $105.00 price target.
FTNT’s price has also changed slightly for the past six months – from $104.720 to $96.580, which is a -7.77% drop .