Why This Analyst Expects Fortinet Shares To Climb Even During Recession

Fortinet Inc FTNT is well-positioned as security is likely to remain a priority within IT spending even in the event of a recession, according to BMO Capital Markets.

The Fortinet Analyst: Keith Bachman upgraded the rating for Fortinet to Outperform, while raising the price target to $350 from $325 on a like-for-like basis. "However, given the 5-1 stock split, our target price
goes to $70 a share," said the analyst.

The Fortinet Thesis: Although a recession seems “increasingly likely,” security spending will likely remain resilient, Bachman said in the upgrade note.

“Cyberattacks will not slow during a recession, and given the elevated threat landscape, we think robust security capabilities are increasingly viewed as a necessity,” he added.

“We think FTNT remains well-positioned to gain market share in the firewall, SD-WAN, OT, and secure networking markets, including from CSCO and VMW,” the analyst wrote.

“We believe that FTNT offers a broad and growing portfolio that can drive billings growth of greater than 20% y/y over the next several years, driven by Fabric and FortiGate billings,” Bachman further mentioned.

FTNT Price Action: Shares of Fortinet are down 0.81% to $58.38 at the time of publication Tuesday morning.

Posted In: BMO Capital Marketscyber securityKeith BachmanAnalyst ColorUpgradesPrice TargetAnalyst RatingsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.