In a report released yesterday, Peter Levine from Evercore ISI maintained a Hold rating on Fortinet (FTNT – Research Report), with a price target of $105.00.
Peter Levine has given his Hold rating due to a combination of factors surrounding Fortinet’s recent performance and future outlook. The company reported mixed results for the first quarter, with a notable discrepancy between service and product revenues. While product revenue exceeded expectations, service revenue fell short, partly due to fewer days in the quarter and some churn in their customer base.
Despite beating management’s guidance for the first quarter, Fortinet’s guidance for the second quarter was more cautious, reflecting broader market volatility and uncertainty. The recent transition in sales leadership has also introduced a more conservative approach, which has created some uncertainty in forecasting. Although management remains optimistic about the second half of the year, the potential for future downward revisions due to macroeconomic conditions and the new sales team’s conservative tone contributes to the Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $103.00 price target.
FTNT’s price has also changed moderately for the past six months – from $83.680 to $106.720, which is a 27.53% increase.