TD Cowen sees Flex’s strong Q4 as positive indicator for Fortinet, Palo Alto Net

TD Cowen notes Flex (FLEX), contract manufacturer of hardware firewalls for Fortinet (FTNT), Palo Alto Networks (PANW), and Check Point (CHKP) partner, reported robust Q4 results and strong guidance fueled by AI-driven data center build outs. The firm believes the market-related commentary is highly indicative of a positive current business momentum in network security and expects beat-and-raise results from Fortinet and Palo Alto Networks as TD Cowen considers Check Point’s revenue miss an isolated event. Overall, the firm considers Flex’s robust Q4 financials and strong forward guidance indicative of continued strong momentum in network security and expect beat-and-raise results from Buy-rated Fortinet and Buy-rated Palo Alto.