BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
On Tuesday, Cantor Fitzgerald analyst Yi Fu Lee increased the price target on Fortinet stock (NASDAQ:FTNT) to $110, up from the previous $95, while maintaining a Neutral rating. The adjustment comes amid positive checks for the fourth quarter of 2024 and a favorable demand outlook for 2025. The stock, currently trading near its 52-week high with an impressive 78.55% gain over the past six months, shows strong momentum according to InvestingPro data.
In a recent statement, the analyst noted the company’s satisfactory performance, stating, "4Q24 checks better and support an improved demand outlook in 2025, in our opinion." The analyst’s confidence extends to Fortinet’s revenue, billings, and earnings per share (EPS) estimates for both the fourth quarter of 2024 and the full year of 2025, which are ahead of the FactSet consensus. InvestingPro data reveals the company maintains impressive gross profit margins of 79.71% and operates with strong financial health, earning a "GREAT" overall score.
The company’s initiatives to expand its platform have been acknowledged, particularly as Fortinet continues to develop its Secure Access Service Edge (SASE) and Security Operations (SecOps) offerings. However, the analyst believes that, despite the upcoming product refresh, current estimates already reflect these growth opportunities.
Lee anticipates that Fortinet’s guidance for the fiscal year 2025 will align with the consensus, given the improvements noted in the sector’s fundamentals for the upcoming year. The revised price target of $110 reflects these enhancements, as the analyst remains neutral on the stock’s rating.
In other recent news, cybersecurity firm Fortinet has been the focus of several analyst revisions and anticipations of robust earnings. Baird downgraded Fortinet’s rating from Outperform to Neutral, yet raised the price target to $112, following a period of notable performance from the company. Analysts at Rosenblatt Securities and TD Cowen also increased their price targets for Fortinet to $115 and $120 respectively, citing strong demand trends for the company’s network security and cloud-related solutions.
However, Raymond (NSE:RYMD) James downgraded Fortinet’s stock from Outperform to Market Perform, acknowledging the company’s significant growth but expressing caution due to market anticipation of a ’supercycle’ in network security. Piper Sandler upgraded their stance on Fortinet stock to Overweight and increased the price target to $120, pointing to Fortinet’s potential in the forthcoming firewall cycle. Lastly, KeyBanc Capital Markets upgraded Fortinet’s stock from Sector Weight to Overweight and set a new price target of $115, reflecting increased confidence in the company’s prospects.
These recent developments come as Fortinet is expected to see a reacceleration in its revenue growth to a low-teens percentage year-over-year. Analysts’ fourth-quarter revenue estimate for Fortinet stands at $1.604 billion, marking a 13% year-over-year increase. Despite some fluctuations, Fortinet maintains impressive gross profit margins of 79.71% and a strong overall financial health score. These revisions and expectations reflect the evolving market sentiment towards Fortinet’s performance and prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.