Oppenheimer Remains Bullish on Fortinet (FTNT) Following Mid-Quarter Checks

September 19, 2016 8:07 AM EDT
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Price: $32.32 -0.09%

Rating Summary:
    28 Buy, 11 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Oppenheimer reiterated an Outperform rating and $45.00 price target on Fortinet (NASDAQ: FTNT) following a round of mid-quarter checks. The checks indicate demand trends appear healthy, and Oppenheimer believes that FTNT is tracking at least in line with revenue guidance.

Analyst Shaul Eyal commented, "Following a round of mid-quarter checks with 24 VARs, we believe that: 1) FTNT should at least meet revenue guidance ($319M-$324M) with upside achievable if the remaining weeks of 3Q16 reflect similar linearity trends (back-end loaded) to 1H16— we will revert with post-Q checks. 2) Consistency in EMEA (37% of revenues) may suggest another strong quarterly performance (2Q EMEA revenue rose 37.2% YoY vs. total revenue +29.9%), as FTNT continues to focus sales growth efforts in the Americas (43% of revenue). 3) Continuous strength in subscription services, notably FortiSandblast, will likely carry the weight of revenue growth. 4) Streamlined internal operations may indicate elevated attention toward reshuffling the necessary sales talent while focusing on margin expansion—also, as activist investors might monitor FTNT."

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 $35.52 yesterday.

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