Rosenblatt Downgrades Fortinet (FTNT) to Neutral

Rosenblatt analyst Catherine Trebnick downgraded Fortinet (NASDAQ: FTNT) from Buy to Neutral, PT $85 (from $125).

The analyst comments "Despite solid Q2 results and FTNT raising full-year 2025 revenue, billings, and PF EPS guidance, shares dropped about 17% in after-hours trading, reflecting investor caution. The Market response was largely driven by concerns around the firewall refresh cycle, with 40–50% of the 650,000 eligible devices (equating to $180–$255M of a $450M opportunity) already upgraded. This progress raised worries that much of the near-term growth catalyst may be behind us, despite management’s confidence and ongoing strength in cross- and up-selling. Notably, Fortinet posted robust SASE and SecOps billings growth of 21% and 31% year-over-year, respectively, and reaffirmed its goal to achieve the “Rule of 45.” We are moving to the sidelines on the stock, downgrading our rating to Neutral (from Buy) and lowering our price target to $85 (from $125). With limited upside during a key refresh year, we expect the stock to 'trade sideways for a while' until the company can prove further execution on efforts to drive incremental growth."

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 $96.57 yesterday.

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