Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on FTNT stock, giving a Hold rating yesterday.
Shrenik Kothari has given his Hold rating due to a combination of factors that influence Fortinet’s current market position. The company is expected to report strong Q1 results, with billings likely exceeding market expectations. However, the forward-looking signals from the channel are mixed, creating uncertainty about the company’s performance in the upcoming quarters. The potential risks associated with enterprise refresh and the ongoing macroeconomic and tariff-related challenges contribute to this cautious outlook.
Moreover, while Fortinet’s stock has seen significant appreciation, the current valuation reflects a high level of optimism, leaving little room for error. The company’s exposure to tariffs and the increasing difficulty of its billing and product comparisons in the latter half of the year further complicate the risk/reward balance. As a result, Kothari prefers to adopt a patient approach, waiting for clearer trends and resolution of tariff issues before making a more decisive investment recommendation.
According to TipRanks, Kothari is a top 100 analyst with an average return of 25.2% and a 73.15% success rate. Kothari covers the Technology sector, focusing on stocks such as CyberArk Software, Tenable Holdings, and Check Point.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $103.00 price target.