Fortinet's stock shows potential despite revenue growth concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 13 2024
0mins
Should l Buy FTNT?
Source: SeekingAlpha
Fortinet Inc's stock has risen by 6.42% in pre-market trading, reaching a 20-day high.
Despite the stock's recent gains, Fortinet faces challenges with weak firewall sales, leading management to forecast only 12% revenue growth for the upcoming year. However, strong growth in its SASE and SecOps segments, which are projected to increase by 19% and 33% respectively, indicates significant profit potential in the future. This transformation in Fortinet's business model may attract investor interest, even as the overall tech sector experiences a downturn.
The implications of these developments suggest that while Fortinet's immediate revenue outlook may be cautious, the company's strategic focus on software products could position it for stronger performance in the long term.
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Analyst Views on FTNT
Wall Street analysts forecast FTNT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FTNT is 84.18 USD with a low forecast of 70.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
24 Analyst Rating
3 Buy
18 Hold
3 Sell
Hold
Current: 78.930
Low
70.00
Averages
84.18
High
100.00
Current: 78.930
Low
70.00
Averages
84.18
High
100.00
About FTNT
Fortinet, Inc. is engaged in cybersecurity, driving the convergence of networking and security. The Company’s integrated platform, Fortinet Security Fabric, spans secure networking, unified Secure Access Service Edge (SASE) and artificial intelligence (AI)-driven security operations (SecOps). Its products and services include FortiOS, FortiASIC, FortiCloud, FortiAI, FortiEndpoint, and OT Security. The FortiGuard Labs is a cybersecurity threat intelligence and research organization comprised of experienced threat hunters, researchers, analysts, engineers and data scientists who develop and utilize machine learning and AI technologies. FortiGuard and Other Security Services are a suite of AI-powered security capabilities that are integrated as part of the Fortinet Security Fabric to deliver coordinated detection and enforcement across the entire attack surface. FortiCare Technical Support Service is a per-device technical support service. It also operates Fortinet Training Institute.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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