Fed Governor Adriana Kugler to resign
On Tuesday, KeyBanc Capital Markets maintained its Overweight rating on Fortinet shares (NASDAQ:FTNT), with a steady price target of $115.00. This adds to the broader analyst consensus on Fortinet, which according to InvestingPro data shows analyst targets ranging from $83 to $135, with 24 analysts recently revising their earnings expectations upward for the upcoming period. The affirmation comes after Fortinet’s first-quarter earnings report and subsequent discussions with several channel partners. The feedback for April and the beginning of May has been predominantly positive despite a complex macroeconomic environment. The company’s strong financial position is evident in its impressive 81.34% gross profit margin and robust revenue growth of 13.83% over the last twelve months. For deeper insights into Fortinet’s financial health metrics and growth indicators, investors can access the comprehensive Pro Research Report available on InvestingPro. Channel partners indicated a strong pipeline and a positive outlook on the potential for end-of-service refresh opportunities with Fortinet.
The firm’s analysts noted some concerns raised by a few partners regarding recent turnover within Fortinet’s go-to-market (GTM) team. This turnover is believed to have impacted the company’s execution capabilities. Despite these concerns, the overall sentiment remains constructive about Fortinet’s market position and growth prospects.
KeyBanc also addressed changes in their financial projections following Fortinet’s 10-Q filing. They have adjusted their services revenue estimates to reflect a deceleration throughout 2025, which is a shift from their previous model that anticipated a modest acceleration. Consequently, their revenue projections are now 0.5% below the midpoint of Fortinet’s revenue guidance.
The report concluded with a reiteration of the positive outlook on the industry-wide firewall refresh cycle, Fortinet’s specific end-of-service refresh opportunity, and the company’s distinct strategy in expanding into Secure Access Service Edge (SASE). KeyBanc’s stance remains firm on Fortinet’s stock, supported by recent channel conversations and despite the slight caution regarding GTM execution. With a market capitalization of $80.18 billion and an overall financial health score of "GREAT" according to InvestingPro, Fortinet demonstrates strong fundamentals, though it currently trades at a P/E ratio of 42.67, suggesting premium valuation levels.
In other recent news, Fortinet’s first-quarter financial performance for 2025 has drawn varied reactions from analysts and investors. The company reported robust results, with revenue, billings, and product sales surpassing expectations, yet subscription revenue growth lagged behind. Despite reaffirming its full-year revenue guidance and increasing its operating margin outlook, Fortinet’s stock experienced a significant decline in after-hours trading. Analysts from Stifel adjusted their price target for Fortinet from $115 to $95, maintaining a Hold rating due to investor concerns over macroeconomic impacts and sales-force uncertainties. Meanwhile, Cantor Fitzgerald kept a Neutral rating with a $100 price target, highlighting mixed results with strong product sales but weaker subscription growth. Truist Securities maintained a Buy rating with a $125 price target, emphasizing Fortinet’s solid product revenue growth and strategic focus on Secure Access Service Edge (SASE) and Security Operations (SecOps). Bernstein analysts revised their price target to $94, maintaining a Market Perform rating, citing potential vulnerabilities in Fortinet’s SMB sector amid economic contractions. Piper Sandler, however, reiterated an Overweight rating with a $135 price target, underscoring strong enterprise demand and a positive outlook for the company’s product refresh cycle.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.