Needham & Company Maintains a 'Buy' on Fortinet (FTNT); Raising December Estimates
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Price: $64.55 +1.35%
Rating Summary:
25 Buy, 30 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
Rating Summary:
25 Buy, 30 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 15 | Down: 11 | New: 13
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Needham & Company maintains a 'Buy' on Fortinet (NASDAQ: FTNT) price target of $26.00.
Needham analyst says, "The Fortinet results for SepQ were a strong beat, better than feared, given the negative macro environment and last quarter’s weak performance in EMEA. Approaching the SepQ results call, we believe fears were quelled somewhat by the recent strong performance of Check Point (Nasdaq: CHKP_ last week, and a general sense that network security spending was solid in the field. For us, the wild card was service provider spending (AT&T (NYSE: T), Verizon (NYSE: VZ), others) who are the high-end buyers of the largest FTNT carrier-grade products; as it turned out, the service provider group drove 28% of billings in a strong performance, and well above other verticals: govt (11%), retail (14%) healthcare (3%). The guidance for DecQ was above consensus on revenue and EPS, yet likely below hopes for billings; we believe FTNT is seeing a shift towards “near-term recognition” of a greater share of revenue, as product mix changes, add-on modules have slowed, and renewal contracts are shortening, heading towards 1yr, rather than multi-year...We are upping DecQ estimates near guidance, and our CY12 revenue remains unchanged at $565m billings, $475m revenue, and EPS goes from $0.41 up to $0.46 on cost control and share count discipline."
For more ratings news on Fortinet click here and for the rating history of Fortinet click here.
Shares of Fortinet closed at $19.12 yesterday.
Needham analyst says, "The Fortinet results for SepQ were a strong beat, better than feared, given the negative macro environment and last quarter’s weak performance in EMEA. Approaching the SepQ results call, we believe fears were quelled somewhat by the recent strong performance of Check Point (Nasdaq: CHKP_ last week, and a general sense that network security spending was solid in the field. For us, the wild card was service provider spending (AT&T (NYSE: T), Verizon (NYSE: VZ), others) who are the high-end buyers of the largest FTNT carrier-grade products; as it turned out, the service provider group drove 28% of billings in a strong performance, and well above other verticals: govt (11%), retail (14%) healthcare (3%). The guidance for DecQ was above consensus on revenue and EPS, yet likely below hopes for billings; we believe FTNT is seeing a shift towards “near-term recognition” of a greater share of revenue, as product mix changes, add-on modules have slowed, and renewal contracts are shortening, heading towards 1yr, rather than multi-year...We are upping DecQ estimates near guidance, and our CY12 revenue remains unchanged at $565m billings, $475m revenue, and EPS goes from $0.41 up to $0.46 on cost control and share count discipline."
For more ratings news on Fortinet click here and for the rating history of Fortinet click here.
Shares of Fortinet closed at $19.12 yesterday.
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