UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Fortinet

In a report published Wednesday, Deutsche Bank reiterated its Buy rating on Fortinet FTNT, but lowered its price target from $32.00 to $30.00. Deutsche Bank noted, “Part macro and part execution; Cutting PT from $32 to $30. FTNT's Q3'12 results came in slightly below investor expectations, as billings and revenues were slightly lower than the consensus numbers. The slowdown was driven by slow growth in AMRS and APAC. The company indicated that it had some organizational issues in China, and the company did not meet its internal targets in that region, negatively impacting the quarter to the tune of ~$2m. Billings in AMRS slowed down to 21% y/y compared to TTM average of 35%. Demand momentum in the infrastructure space appears to be slowing, as also seen from the results of some other companies in this space.” Fortinet closed on Tuesday at $24.80.