UPDATE: Stifel Reiterates Buy Rating, Raises PT on Fortinet Following Strong 3Q13 Results

In a report published Thursday, Stifel analyst Todd Weller reiterated a Buy rating on Fortinet FTNT, and raised the price target from $25.00 to $27.00. In the report, Stifel noted, “Fortinet's 3Q13 results exceeded its guidance, our estimates, and consensus. We believe the key positive was another quarter of improved billings growth. We believe this lends reasons to be optimistic about the prospects for improved growth going forward and supports to our view that top line growth can return to the mid-to-high teens in the coming quarters. The company's margin performance was positive reflecting balanced growth investment while Fortinet looks to reinvigorate growth. We believe the guidance reflects conservatism as Fortinet looks to rebuild a track record of meetings/exceeding expectations. We reiterate our Buy rating on the shares and are increasing our target price to $27 based on 18x our 2015 adjusted FCF estimate.” Fortinet closed on Wednesday at $20.56.