On Friday, RBC Capital Markets adjusted its financial outlook on Fortinet (NASDAQ:FTNT) shares, raising the price target to $115 from the previous $97, while maintaining a Sector Perform rating on the cybersecurity firm’s stock. The revision follows Fortinet’s recent quarterly performance, which was deemed positive by RBC Capital’s analyst. According to InvestingPro data, Fortinet’s stock has shown impressive momentum, delivering a 49.75% return over the past six months and currently trading near its 52-week high of $105.82.
The analyst, Dan Bergstrom, noted that the quarter’s results were solid and provided insight into the company’s future opportunities. He highlighted the initial momentum observed in large enterprise upgrades during the quarter, as well as go-to-market (GTM) strategies aimed to capitalize on upcoming refresh opportunities. Bergstrom also pointed to potential upsells related to Secure Access Service Edge (SASE), Security Operations (SecOps), access points, and switches. The company’s strong position is reflected in its impressive 79.71% gross profit margin and 10.4% revenue growth over the last twelve months. InvestingPro subscribers can access 18 additional key insights about Fortinet’s financial health and growth prospects.
The RBC Capital analyst anticipates that early refresh activities will begin in the second half of 2025, potentially serving as a tailwind for Fortinet’s financial figures going into calendar year 2026. This comes after what is expected to be a softer first half of 2025 from a comparative standpoint. Bergstrom’s remarks also underscored the potential for a significant refresh in 2026, which could further support the company’s numbers into the following year.
Bergstrom’s commentary included an expectation that approximately a quarter of Fortinet’s installed base would reach end-of-life by 2026. He suggested that this would present an opportunity for the company to increase product revenue and service expansion through upsells at that time.
Fortinet’s stock price adjustment by RBC Capital reflects a positive outlook on the company’s ability to leverage its market position and product offerings in the near future, as it navigates the competitive landscape of cybersecurity solutions.
In other recent news, Fortinet, a global cybersecurity solutions provider, has seen its stock price targets revised by several analysts. BMO Capital Markets raised its Fortinet target to $122, citing the company’s strong performance and significant operating margins, while expressing concerns about the company’s forward-looking guidance. Piper Sandler also increased its Fortinet target to $135, highlighting the company’s strong product growth and record margins.
Stifel analysts revised their Fortinet target to $115, focusing on the company’s potential in the upcoming firewall refresh cycle and its ability to leverage cross-selling opportunities. They acknowledged mixed feedback regarding Fortinet’s cross-selling strategy but remained optimistic about the company’s financial outlook.
Cantor Fitzgerald adjusted its Fortinet target twice, first to $115 and then to $110. The firm acknowledged Fortinet’s total billings growth, significant uptick in larger deals, and advancements in Secure Access Service Edge (SASE) and Security Operations (SecOps) adoption. Despite these positive developments, Cantor Fitzgerald maintained a neutral stance on the stock.
These analyst updates highlight recent developments in Fortinet’s financial performance and market position. However, investors are encouraged to consider these insights in the context of their own investment strategies and objectives.
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