Fortinet downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Brian Essex downgraded Fortinet to Neutral from Overweight with a price target of $52, down from $67. Fortinet reported billings and revenue under expectations and cut full year billings and revenue guidance for the second quarter in a row, the analyst tells investors in a research note. The firm says that while Fortinet’s fiscal 2023 guidance may be “kitchen sinked” this time, visibility into the potential rate of recovery in fiscal 2024 is limited in light of macro headwinds and a change in go to market strategy that shifts the focus of the sales force. It sees risk to multiples as investors continue to digest the impact of this cycle.