Oppenheimer Raises Price Target on Fortinet (FTNT) Following Mid-Quarter Checks

Oppenheimer reiterates an Outperform rating on Fortinet (NASDAQ: FTNT), and raised the price target to $46.00 (from $39.00), following mid-quarter checks. Analyst Shaul Eyal believes FTNT 2Q revenue is tracking ahead of mid-point revenue guidance of $226M (up 23% YoY).

Eyal commented, "We are raising our PT to $46 from $39, nudging our 2Q revenue estimate higher following mid-Q checks suggesting (yet again) FTNT's business is tracking ahead of guidance. Our bullish view is based on the following premises: 1) Growing number of 2Q contract wins over $500K; 2) Strong performance of telecom vertical; 3) Ongoing traction of FTNT's high-end appliances; and 4) All geographic regions are realizing equal strength. We will revisit our estimates post quarter's close pending a final round of checks and for now, our confidence level continues to grow. Our $46 PT is based on 6.2x EV/FY16E revenue."

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 $41.07 yesterday.

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