Morgan Stanley: Fortinet (FTNT.US) firewall update performance disappointing, rating and target price downgraded
According to Jinse Finance APP, JPMorgan has downgraded Fortinet (FTNT.US) from "Hold" to "Underweight," and also lowered its target price from $78 to $67, partly due to disappointing firewall upgrade performance.
The team led by JPMorgan analyst Meta Marshall stated in a report to investors on Tuesday: "We believe Fortinet's strategy of attaching more products to its installed customer base will still succeed, but since the scale of firewall upgrades is smaller than expected, we think performance forecasts for fiscal year 2026/2027 may need to be revised downward, which will negatively impact its stock price."
Marshall added: "However, given that the free cash flow multiple is still in the low to mid-20s, and we believe that after product upgrades, its growth rate is expected to reach high single digits, we tend to think that the risk-reward ratio is not optimistic in the short term."
Marshall stated: "Investors believe the new management has the ability to reaccelerate revenue growth, but this expectation has not yet been reflected in estimates, despite ongoing short-term uncertainties. Since the new CEO only took office at the end of last year, investors may still give some leeway in the short term."
Despite downgrading Fortinet, JPMorgan still maintains a "Hold" rating on its competitor Check Point Software Technologies (CHKP.US).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Kazakhstan is testing crypto cards with Mastercard
Share link:In this post: Kazakhstan launches crypto cards in partnership with Mastercard. The new solution will convert tether to tenge at the time of payment. The card project is backed by the central bank and a local crypto exchange.
DeFi TVL climbs 41% to a three-year high as Solana dApps lead in revenue
Share link:In this post: DeFi’s total locked value (TVL) climbed by 41% in Q3, surpassing $160 billion, marking the first significant move since May 2020. Ethereum and Solana recorded the highest growth, with Ethereum’s TVL jumping to 50% and Solana’s rising 10.5%. Solana dApps continue to surpass all L1 and L2 networks in daily revenue, with Solana recording $217.39 million in August.
Broadcom stock surges 4% after earnings beat and $10 billion custom chip order
Share link:In this post: Broadcom stock jumped 4% after beating Q3 earnings and securing a $10 billion AI chip order. The company expects $17.4 billion in Q4 revenue, above Wall Street’s $17.02 billion forecast. AI revenue hit $5.2 billion, with another $6.2 billion expected next quarter, driven by new XPU orders.
August Crypto Market Report: Fed Signals Rate Cuts to Resume in September, Market Rotation Reveals Hidden Opportunities
Expectations of Federal Reserve interest rate cuts are driving capital inflows into the crypto market, with increasing institutional interest. The US stock market is performing strongly, driven by AI and policy shifts, but valuations remain high. Bitcoin market maturity is increasing, volatility is declining, and institutional capital continues to flow in. Summary generated by Mars AI. The accuracy and completeness of this summary are still being improved as the Mars AI model continues to iterate.
Trending news
MoreCrypto prices
More
