Market Overview

Analyst Raises Fortinet Price Target Following 'Home Run Quarter'

Analyst Raises Fortinet Price Target Following 'Home Run Quarter'

Fortinet Inc (NASDAQ: FTNT) stock gained 10% on Friday after the company beat Street expectations with its second-quarter earnings report and issued better-than-expected guidance. The quarter was good enough for one analyst to tack $5 onto his Fortinet price target.

The Analyst

Wedbush analyst Daniel Ives reiterated his Outperform rating for Fortinet and raised his price target from $105 to $110.

The Thesis

Ives said Fortinet’s report confirms that the company is firing an all cylinders.

“Last night FTNT delivered a home run quarter as the company beat the Street across the board with billings the clear star of the show growing over 20%, coupled with a raised outlook for the remainder of the year as the broader product suite and focused go-to-market strategy is paying serious dividends in the field,” Ives wrote in a note.

He said Fortinet has successfully transitioned from an inconsistent niche security play to a major cybersecurity vendor. Give the projected ramp in cybersecurity spending expected in the years ahead and Fortinet’s potential to gain market share from its competitors, Ives said the future looks bright for the stock.

Looking ahead to the second half of the year, Ives said Fortinet has several new products in the works that could serve as positive catalysts for the stock, even after its big post-earnings gain. In the longer term, Ives said 5G network security could serve as an additional catalyst as well.

In the meantime, Fortinet is seeing success with its current products and executing its sales strategy well, especially when it comes to larger deals.

Price Action

Following Friday’s big gain, Fortinet shares are now up 34.3% overall in the past year. The stock traded around $86.59 at time of publication.

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Latest Ratings for FTNT

Aug 2019MaintainsEqual-Weight
Aug 2019MaintainsSell
Aug 2019UpgradesNeutralBuy

View More Analyst Ratings for FTNT
View the Latest Analyst Ratings

Posted-In: Daniel Ives WedbushAnalyst Color Earnings News Price Target Analyst Ratings Best of Benzinga


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