Baird Downgrades Fortinet (FTNT) to Neutral

Baird analyst Shrenik Kothari downgraded Fortinet (NASDAQ: FTNT) from Outperform to Neutral with a price target of $112.00 (from $105.00).

The analyst comments: "Excluding RBRK, which had its IPO in April 2024, FTNT was the strongest performer under coverage in 2024 (up ~61% vs. IGV up ~23%). Though still slightly outperforming IGV YTD (+7% vs. IGV +3%), FTNT has been one of the worst performers under coverage in the first month of January. Despite CY25 revenue estimates being revised ~4% lower since the start of 2024, current expectations are for FTNT to achieve a reacceleration in revenue growth (~130 bps acceleration) to low-teens % y/y growth. With expected sustained 30%+ operating and FCF margins, we believe FTNT will continue increasing investments (organically or via additional M&A) to reignite growth, though we remain tactically cautious, awaiting clearer signs of refresh cycle upside."

For an analyst ratings summary and ratings history on Fortinet click here. For more ratings news on Fortinet click here.

Shares of Fortinet closed at $100.88 yesterday.

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