UPDATE: Stifel Starts Fortinet (FTNT) at Buy

September 21, 2021 4:04 AM EDT
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Price: $51.60 +1.47%

Rating Summary:
    34 Buy, 13 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 8 | Down: 33 | New: 18
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(Updated - September 21, 2021 5:14 AM EDT)

Stifel analyst Adam C. Borg initiates coverage on Fortinet (NASDAQ: FTNT) with a Buy rating and a price target of $355.00.

The analyst comments "We are initiating coverage of Fortinet with a Buy rating and 12-month target price of $355. While Fortinet’s success is centered on its leading appliance-based firewalls, the company has organically built a broad cybersecurity platform spanning network, security operations, cloud, and user/device security. A key differentiator is Fortinet’s proprietary ASIC chips, which offer strong performance, price-points that are 30%-40% cheaper than competitors, and enable Fortinet to introduce adjacent capabilities such as SDWAN natively into its firewall appliances. Given this backdrop, along with a constructive cybersecurity spending environment and Fortinet's balance across customer sizes, products, geographies, and industries, we expect strong execution to continue in coming years. Net/net, we believe Fortinet has a number of drivers to sustain at least mid-to-high-teens top-line growth along with the Rule of 40 in coming years and despite the run in shares (+100% YTD, vs. the S&P +16%), we believe valuation remains attractive and are buyers."

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 $297.07 yesterday.

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