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Nomura Raises Numbers on Fortinet (FTNT) on Q4 Results, Outlook

January 31, 2013 8:16 AM EST Send to a Friend
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Price: $22.62 +2.63%

Rating Summary:
    21 Buy, 9 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 10 | New: 7
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Nomura Securities analyst Rick Sherlund raised his price target on Fortinet (NASDAQ: FTNT) from $24 to $26 following strong results and outlook.

Sherlund commented: "Doing well in the security market. Fortinet reported billings growth of 24% (or 22.6% if we exclude $1.9mn from the sale of patents), above our 19% estimate. Revenue growth of 23.5% (excluding the unusual patent sale) was also above our estimate of 19%, and EPS of $0.17 ($0.16) was above our/Street estimate of $0.15. In assessing the key metrics, all looked good to us. Fortinet seems to be pushing back effectively with high performance systems, a broader product focus and appeal to a broader market including smaller companies and across all geographies, while also migrating up market into the enterprise segment. New products will begin to ramp up in Q1 and are expected to improve enterprise competitiveness. We maintain our Buy rating and have raised our target price to $26 from $24 on encouraging progress in sustaining high growth despite the tougher macro and competitive environment. We continue to be positive on the fundamentals for the company. The shares trade at 16.5x 2013E EV/uFCF."

The firm adjusted FY13E EPS from $0.62 to $0.61; FY14E EPS from $0.74 to $0.71.

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 $19.35 yesterday.




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