Stock Market News

Fortinet Upgraded by BMO Capital on Durable Growth

2022.06.29 00:46

Fortinet Upgraded by BMO Capital on Durable Growth
Fortinet (FTNT) Upgraded By BMO Capital On Durable Growth

By Sam Boughedda

BMO Capital analyst Keith Bachman upgraded Fortinet (NASDAQ:FTNT) to Outperform from Market Perform on Tuesday. The analyst raised the firm’s price target on the stock to $350 from $325 on a like-for-like basis. However, given its recent 5-1 stock split, the target was moved to $70 per share.

In a note to clients, the analyst said the upgrade was driven by three key factors.

The first is BMO’s preference of GARP over Growth software “for the balance of CY22. FTNT has an attractive FCF valuation and has amongst the highest quality FCF in our coverage universe. We believe the bear case for FTNT (and PANW and CHKP) is that firewall growth will hit an air pocket. Hence, if FTNT exceeds estimates this year and meets or modestly exceeds growth expectations next year, we think the shares will move higher,” wrote Bachman.

The analyst also pointed to the firm’s belief that security will remain amongst the most resilient parts of IT spending during a recession.

“We believe that security will remain a priority within IT spend in CY22 and beyond. In addition, if a recession occurs, which seems increasingly likely, we believe security spending will remain resilient. Cyberattacks will not slow during a recession, and given the elevated threat landscape, we think robust security capabilities are increasingly viewed as a necessity,” he added.

The final factor is BMO’s belief that the company can “sustain 20%+ rev/billing growth and high-30% FCF margins through CY23. “FTNT offers a broad and growing portfolio that can drive billings growth of greater than 20% y/y over the next several years, driven by Fabric and FortiGate billings,” said Bachman.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,180.31 1.01%
ethereum
Ethereum (ETH) $ 3,435.05 3.89%
tether
Tether (USDT) $ 1.00 0.04%
solana
Solana (SOL) $ 257.95 1.12%
bnb
BNB (BNB) $ 659.10 5.50%
xrp
XRP (XRP) $ 1.50 3.21%
dogecoin
Dogecoin (DOGE) $ 0.433412 6.08%
usd-coin
USDC (USDC) $ 0.999944 0.02%
cardano
Cardano (ADA) $ 1.06 9.80%
staked-ether
Lido Staked Ether (STETH) $ 3,434.20 3.89%
tron
TRON (TRX) $ 0.214511 6.50%
avalanche-2
Avalanche (AVAX) $ 42.32 6.33%
the-open-network
Toncoin (TON) $ 6.53 19.13%
stellar
Stellar (XLM) $ 0.51812 66.18%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.06%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,061.97 3.46%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,809.21 1.19%
polkadot
Polkadot (DOT) $ 8.73 38.00%
chainlink
Chainlink (LINK) $ 17.76 14.87%
bitcoin-cash
Bitcoin Cash (BCH) $ 512.15 5.09%
sui
Sui (SUI) $ 3.48 0.31%
weth
WETH (WETH) $ 3,434.35 4.02%
pepe
Pepe (PEPE) $ 0.000021 2.57%
leo-token
LEO Token (LEO) $ 8.62 3.34%
near
NEAR Protocol (NEAR) $ 6.20 9.14%
litecoin
Litecoin (LTC) $ 99.43 9.70%
aptos
Aptos (APT) $ 12.86 7.33%
uniswap
Uniswap (UNI) $ 11.05 17.51%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,617.01 3.82%
hedera-hashgraph
Hedera (HBAR) $ 0.154577 13.34%
internet-computer
Internet Computer (ICP) $ 11.51 12.34%
crypto-com-chain
Cronos (CRO) $ 0.197754 4.87%
usds
USDS (USDS) $ 0.99844 0.57%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.576053 22.14%
ethereum-classic
Ethereum Classic (ETC) $ 29.97 7.26%
render-token
Render (RENDER) $ 7.89 9.54%
kaspa
Kaspa (KAS) $ 0.157438 6.16%
bittensor
Bittensor (TAO) $ 519.42 6.03%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 14.57%
bonk
Bonk (BONK) $ 0.000049 1.54%
whitebit
WhiteBIT Coin (WBT) $ 24.77 0.08%
arbitrum
Arbitrum (ARB) $ 0.860328 9.50%
dai
Dai (DAI) $ 1.00 0.01%
vechain
VeChain (VET) $ 0.042193 26.87%
dogwifcoin
dogwifhat (WIF) $ 3.34 7.06%
mantra-dao
MANTRA (OM) $ 3.70 1.82%
filecoin
Filecoin (FIL) $ 5.47 15.62%
cosmos
Cosmos Hub (ATOM) $ 8.23 12.37%
blockstack
Stacks (STX) $ 2.10 7.95%