UBS Reiterates Neutral Rating on Fortinet (FTNT)

UBS analyst Fatima Boolani reiterated a Neutral rating and $69.00 price target on Fortinet (NASDAQ: FTNT).

The analyst comments "Financial details are still light, but this acquisition immediately elevates Fortinet’s presence in cloud security and fills a significant hole in FTNT’s consolidation strategy. Lacework brings a true CNAPP (Cloud-native App Protection Platform) that immediately expands Fortinet’s very light marketshare within cloud (FortiCNP offering launched ~2yrs ago, with checks suggesting very limited adoption). FTNT has previously approached this market through partnership with Wiz, but an in-house offering brings FTNT in-line with its closest peers (PANW and CHKP). Lacework brings a relatively complete CNAPP, with internally developed agent-based and agentless offerings for different types of cloud workloads, CSPM/VM, IaC/developer security, and CIEM (Cloud Infra Entitlement Mgmt) that Fortinet had been lacking. The acquisition appears to be a strong fit from a customer perspective (Lacework has historically done well with midmarket, while working to the enterprise) and GTM acceleration perspective. We expect more details on the company’s 2Q call (likely early August), with questions remaining about the likely dilutive nature of the acquisition."

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 $59.72 yesterday.

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