Fortinet, the Technology sector company, was revisited by a Wall Street analyst today. Analyst Meta Marshall from Morgan Stanley downgraded the rating on the stock to a Sell and gave it a $67.00 price target.
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Meta Marshall has given his Sell rating due to a combination of factors impacting Fortinet’s stock performance. One of the primary reasons is the anticipated underperformance in the firewall refresh cycle, which is not expected to meet previous growth expectations. This shortfall is likely to exert pressure on the fiscal year 2026 and 2027 estimates, making the stock less attractive in the near term.
Furthermore, despite Fortinet’s efforts to expand its product offerings and increase sales, the current valuation remains high relative to expected growth rates. The stock’s free cash flow multiple is still in the low-to-mid 20s, which is considered high for a company that may only achieve high single-digit growth post-refresh. As a result, the risk-reward profile appears less favorable, leading to the Sell recommendation until the market fully prices in these revised growth expectations.