Nomura Securities Cuts Price Target on Fortinet (FTNT) after Results, Keeps Buy Rating

October 17, 2012 8:48 AM EDT Send to a Friend
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Price: $27.11 +0.22%

Rating Summary:
    22 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Nomura Securities cut its price target on Fortinet (NASDAQ: FTNT) from $32 to $28, but maintained their Buy rating following Q3 results and lackluster guidance.

Analyst Rick Sherlund comments, "Fortinet reported billings growth of over 20% in all three geographical territories, but was a bit light in China and the Americas. Overall revenues and EPS were in line. The guidance was cautious as usual for next year at mid to high-teens revenue and billings growth, consistent with guidance in the previous two years. Management discussed the announcement yesterday of the FortiOS 5.0 operating system as well as updated appliances that will use the new version of the company's custom FortiASIC. New products will begin to ramp up in Q1. We maintain our Buy rating, but lower our target price on slower top-line growth expectations. We continue to be positive on the fundamentals for the company including an attractive growth market, broad product line and high performance solutions that span all vertical markets and all geographies."

FY12E EPS at $0.51; FY13E EPS at $0.62.

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 $24.80 yesterday.


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