Sunnyvale, California-based Fortinet, Inc. (FTNT) is a cybersecurity firm that gives a broad vary of safety options, together with next-generation firewalls, endpoint safety, intrusion prevention, and cloud safety. Valued at a market cap of $64.5 billion, the corporate is thought for its robust presence in community safety and rising deal with cloud and software-based companies.
This cybersecurity firm has lagged behind the broader market over the previous 52 weeks. Shares of Fortinet have gained 6.9% over this timeframe, whereas the broader S&P 500 Index ($SPX) has soared 17.4%. Furthermore, on a YTD foundation, the inventory is down 10.9%, in comparison with SPX’s 16% surge.
Narrowing the main target, Fortinet has additionally underperformed the Xtrackers Cybersecurity Choose Fairness ETF’s (PSWD) 12.4% uptick over the previous 52 weeks and 9.7% YTD rise.
Regardless of posting a better-than-expected Q2 efficiency on Aug. 6, shares of Fortinet crashed 22% within the following buying and selling session. The corporate’s complete income improved 13.6% year-over-year to $1.6 billion, marginally surpassing consensus estimates. Moreover, its internet earnings surged 15.9% from the year-ago quarter to $440.1 million, whereas its money circulation from operations superior 12.2% from the identical interval final 12 months, reaching $1.3 billion.
Nonetheless, Fortinet’s fiscal 2025 income steerage of $6.7 billion to $6.8 billion got here in under Wall Avenue’s expectations, which harm investor sentiment.
For the present fiscal 12 months, ending in December, analysts anticipate FTNT’s EPS to develop 5.7% 12 months over 12 months to $2.21. The corporate’s earnings shock historical past is promising. It exceeded the consensus estimates in every of the final 4 quarters.
Among the many 42 analysts protecting the inventory, the consensus score is a “Maintain,” which is predicated on 9 “Sturdy Purchase,” 30 “Maintain,” one “Average Promote,” and two “Sturdy Promote” scores.
This configuration is significantly much less bullish than three months in the past, with 14 analysts suggesting a “Sturdy Purchase” score and none recommending “Average Promote.”
On Oct. 22, Jonathan Ruykhaver from Cantor Fitzgerald maintained a “Maintain” score on FTNT, with a value goal of $87, implying a 3.3% potential upside from the present ranges.
