Oppenheimer Cuts Price Target Following Fortinet (FTNT) 2c EPS Beat

Oppenheimer reiterated an Outperform rating on Fortinet (NASDAQ: FTNT), and cut the price target to $50.00 (from $55.00), following the company's 3Q15 earnings results. Revenue of $260.1M beat the consensus estimate of $258.6M, and EPS of $0.14 beat the Street's $0.12 estimate. Product revenue of $120M was shy of consensus $124M estimate.

Analyst Shaul Eyal commented, "FTNT's 3Q results exceeded consensus revenue and EPS estimates, but product revenue being shy of expectations coupled with an intact 4Q15 revenue guide disappointed investors, and even better than expected 40% YoY billings growth was insufficient as investors sent the shares down ~13% AMC. Where do we go from here? While shares will be range-bound near term, we believe the following could reignite interest: 1) FY16 commitment toward a measured balance between growth and investments; 2) Continued YoY revenue growth of at least 25%; 3) Further traction in the US market. While the overall fundamentals are mostly unchanged, the sentiment is sour. We are lowering our PT to $50 from $55, but would take advantage of the excessive after-hours pressure."

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 $43.24 yesterday.

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