TD Cowen analyst Shaul Eyal raised the price target on Fortinet (NASDAQ: FTNT) to $135.00 (from $120.00) while maintaining a Buy rating.

The analyst commented: "Solid demand tailwinds from the current EOS firewall refresh cycle, a record 6,900 new logo wins, strong execution of Unified SASE (+13% y/y) and SecOps ("up double-digit %"), with a minor contribution from M&A, gave us a blowout 4Q on almost all key metrics. In absence of escalating US tariff policies, we expect 1Q25 to be another 'beat-and-raise'. Reiterate Buy, raising PT to $135 (prior: $120).

The end-of-service (EOS) refresh cycle is already in full swing as one-fourth of the installed base of FortiGate units will need to be replaced by 2026. Beyond that, we are seeing initial signs for elevated through-cycle growth driven by the hyperscalers' need to deploy FTNT's energy-efficient next-gen firewalls (e.g., powered by the FortiASIC-NP7) in their data centers. In absence of escalating US tariff policies, we expect 1Q25 to be another 'beat-and-raise' print. Reiterate Buy, raising PT to $135 (from $120 prior), implies 13x EV/ FY26 Rev, 41x EV/FY26 FCF."