UBS Maintains a 'Neutral' on Fortinet (FTNT); Balanced Outlook Mutes Stock View

UBS maintains a 'Neutral' on Fortinet (NASDAQ: FTNT) price target raised $1 to $25.

UBS analyst says, "$121M/$0.14 (UBSe $116M/$0.12) headlined by billings +27% (UBSe +21%) on continued enterprise and service provider traction and acceleration in Europe. Expect network security demand to remain a bright spot in global IT spend, however for the stock the risks balance the positives, namely 1) AH valued at 7x ’12 EV/revs, 2) less room for upside to FY12 est’s under a blue-sky scenario, 3) potential 2012 cyber-sec. IPOs could partially remove thematic scarcity premium."

"Raising FY12 to $520M/$0.51 from $506M/$0.49 on OM -40bps y/y at 24.0% with investments expected to depress operating leverage. Revs delta is higher services revs +23% (vs. +19% prior)." (UBS raises FY13 EPS from $0.55 to $0.58)

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 $22.81 yesterday.

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