Fortinet, Inc. (FTNT), headquartered in Sunnyvale, California, provides cybersecurity and convergence of networking and security solutions. Valued at a market capitalization of $60.8 billion, the company’s offerings include network security, secure networking, zero trust access, and AI-powered security operations.
This cybersecurity company has significantly underperformed the broader market over the past 52 weeks. FTNT shares have fallen 15.6% during this period, while the broader S&P 500 index ($SPX) has gained 16.1%. However, on a year-over-year basis, the stock is up 2.9%, outperforming SPX’s 1.9% return.
To narrow the focus, FTNT has also lagged the First Trust NASDAQ Cybersecurity ETF (CIBR), which is up 10.2% over the past 52 weeks. However, it has surpassed CIBR’s marginal year-to-date increase.
On Nov. 12, Fortinet shares fell 1.8% after Daiwa Securities downgraded the stock from “Outperform” to “Neutral,” pointing to slowing near-term growth momentum and valuation pressures across the broader cybersecurity sector.
For the current fiscal year, which ends in December, analysts expect FTNT’s EPS to grow 13.9% year over year to $2.38. The company’s track record of earnings surprises is promising. It surpassed consensus estimates in each of the last four quarters.
Among the 42 analysts covering the stock, the consensus rating is “Hold,” which is based on nine “Strong Buy” ratings, 29 “Hold” ratings, one “Moderate Sell” rating, and three “Strong Sell” ratings.
The setup is more bullish than a month ago, with eight analysts suggesting a “Strong Buy” rating.
On January 23, Toronto-Dominion Bank (TD) analyst Shaul Eyal upgraded FTNT to “Buy”, with a price target of $100, indicating a 22.4% upside potential from current levels.
The $86.24 average price target represents a 5.5% premium to FTNT’s current price levels, while the $120 street high price target suggests a 46.9% upside potential from current levels.
On the date of publication, Neharika Jain had no (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com