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Fortinet Stock Slips Amidst Growth Concerns
30 Jan
Summary
- Fortinet stock saw a 15.6% decline in the last 52 weeks.
- Analysts upgraded Fortinet to a 'Buy' rating with a $100 price target.
- The company's EPS is expected to grow 13.9% for the current fiscal year.
Sunnyvale, California-based Fortinet, Inc. (FTNT), a provider of cybersecurity and converged networking solutions, has experienced a notable market underperformance over the last 52 weeks, with its shares dropping 15.6%. This contrasts with the broader S&P 500 Index's gain of 16.1% during the same period. Despite this, FTNT has shown a positive year-to-date return of 2.9%, exceeding the S&P 500's 1.9% rise.
Recent analyst actions have reflected a shifting sentiment. On November 12, shares fell after Daiwa Securities downgraded the stock to 'Neutral' due to concerns about slowing growth momentum and sector valuation pressures. However, more recently, on January 23, The Toronto-Dominion Bank analyst Shaul Eyal upgraded FTNT to 'Buy' with a price target of $100, indicating a potential 22.4% upside.
Analysts project Fortinet's EPS to grow by 13.9% year-over-year to $2.38 for the current fiscal year ending in December. The company has a consistent track record of exceeding earnings estimates, having surpassed consensus in each of the last four quarters. Among 42 analysts covering the stock, the consensus rating is 'Hold,' with a mean price target of $86.24.
