Loop Capital starts Fortinet at Buy, sees security spend stable beyond near term

Loop Capital analyst Fahad Najam initiated coverage of Fortinet with a Buy rating and $66 price target. The analyst states that the firm’s checks over the next six months suggest a challenging near-term outlook for the overall cybersecurity sector, with several customers delaying their new IT projects. Beyond that however, Loop Capital checks continue to highlight that spending on the on-prem networking security spending remains stable and a high priority for enterprises, the firm tells investors in a research note, adding that on-premises security is not going away and that investors may be underappreciating the over-$95B total addressable market for on-prem security vendors.