UPDATE: Stifel Nicolaus Reduces PT to $28 on Fortinet Following In-Line Quarter

Stifel Nicolaus reiterated its Buy rating on Fortinet FTNT but lowered its price target from $32 to $28 as in-line earnings disappointed investors. Stifel Nicolaus said, "[W]e feel that the 17% sell off in the stock after hours is an overreaction. This feels to us as being analogous to last year when Fortinet's 2Q11 results were in line and viewed as disappointing. Last year's controversy revolved around Europe. This year's controversy will likely revolve around whether Fortinet's 3Q performance is indicative of potential changes in competitive dynamics. On this front, we don't believe that anything has changed materially and feel that solid 4Q results could serve to quell any controversy. Overall, we view the company's growth profile as being largely intact and view the weakness as a buying opportunity." Fortinet closed at $24.80 on Tuesday.