Robert W. Baird analyst Shrenik Kothari has maintained their neutral stance on FTNT stock, giving a Hold rating on August 4.
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Shrenik Kothari has given his Hold rating due to a combination of factors influencing Fortinet’s current market position. The company reported a robust second quarter with notable growth in revenue and billings, driven by enterprise refreshes and advancements in SASE and SecOps. However, with a significant portion of the refresh cycle already completed, the potential for further growth appears limited, particularly as the visibility in the SMB segment and service revenue conversion remains challenging.
Despite the positive performance, the forecast for service revenue has been slightly adjusted downward, reflecting a cautious approach amid uncertainties in the global economic environment. While Fortinet’s solutions continue to be in demand, and the company maintains confidence in its sales pipeline, the balance of risks and rewards suggests a more neutral stance, justifying the Hold rating as the company navigates through these transitional phases.
In another report released on August 4, Barclays also maintained a Hold rating on the stock with a $110.00 price target.