In a report released today, Peter Weed from Bernstein maintained a Hold rating on Fortinet (FTNT – Research Report), with a price target of $94.00.
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Peter Weed has given his Hold rating due to a combination of factors impacting Fortinet’s financial outlook. The company’s Q1’25 earnings met expectations but fell short of the impressive results seen in late 2024, which may have set higher expectations. Despite solid growth in the enterprise segment, there is uncertainty surrounding the small and medium-sized business sector, and management is still working to understand the underlying issues affecting this area.
Additionally, Fortinet faces challenges in translating its current sales pipeline into predictable outcomes, as evidenced by the deceleration in ARR growth for certain segments. The company’s exposure to macroeconomic risks, particularly in the SMB and branch office markets, adds to the cautious outlook. While there is potential for growth through enterprise cyber consolidation, Fortinet may not be optimally positioned to capitalize on this trend. As a result, the price target was adjusted to $94, reflecting a more conservative approach, while maintaining a Market-Perform rating.
In another report released today, RBC Capital also maintained a Hold rating on the stock with a $105.00 price target.