Pacific Crest Upgrades Fortinet (FTNT) to Overweight
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
- Rockwell Automation (ROK) Said to Attract Takeover Interest from Schneider Electric - Source
- British American Tobacco Offers to Acquire Remaining Shares of Reynolds American (RAI) for $56.50/Share
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Pacific Crest upgraded Fortinet (NASDAQ: FTNT) from Sector Weight to Overweight with a price target of $47. Analyst Rob Owens thinks focus on enhanced profitability and other factors will drive outperformance in shares.
"A shift in focus to increasing profitability, a unified platform solution coming of age at the right time, and a go-to-market strategy that accentuates the company's comparative advantage leave us increasingly confident on Fortinet's ability to benefit from market dynamics," said Owens.
"Marking a shift from the 'growth with improving profitability' messaging, Fortinet committed to improving its profitability profile with meaningful expense rationalization on sales force and product investments. We expect the heightened focus on operating efficiency to be well-received by a market prone to reward profitability and see the potential for further margin upside as we progress through 2017," continued the analyst.
Owens added, "Fortinet continues to shift its go-to-market investment from the large enterprise market to the SMB high-end subset. Given the highly competitive nature of the large enterprise market, we see a reduced focus on the enterprise as well-aligned with the economics of the model."
Shares of Fortinet closed at $35.67 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Stifel Upgrades PayPal (PYPL) to Buy Following 'Solid' Q3 Results
- Rodman & Renshaw Starts Abraxas Petroleum (AXAS) at Buy
- RBC Capital Raises Price Target on Danaher (DHR) Following 'Clean' 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesPacific Crest Securities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!