Loss of CFO Unfortunate for Fortinet (FTNT), Stock Still a Buy - Nomura

September 26, 2012 9:02 AM EDT
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Price: $31.70 -1.83%

Rating Summary:
    28 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 35 | Down: 31 | New: 10
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Yesterday it was learned that Ken Goldman, CFO of Fortinet (Nasdaq: FTNT), will leave the company to join Yahoo! (Nasdaq: YHOO) as CFO effective October 22.

Commenting on the news, Nomura analyst Frederick Grieb said "We are disappointed to see him leave Fortinet and consider this to be an unfortunate loss for the company."

"We believe this likely says nothing about the strength of Fortinet’s business in Q3 (Sept) or the outlook as much as it does the scale of the opportunity available to Mr. Goldman at Yahoo! if the business can be successfully turned around," added Grieb.

"We remain buyers of Fortinet, as we believe the company continues to demonstrate good sales execution, broad product appeal in a strong growth market and with upcoming new product refreshes is well positioned to maintain its leadership position in the UTM market."

Nomura Securities reiterated a Buy rating on Fortinet (NASDAQ: FTNT) with a price target of $32.00.

For an analyst ratings summary and ratings history on Fortinet click here. For more ratings news on Fortinet click here.

Shares of Fortinet closed at $25.85 yesterday.

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