Fortinet Upgraded to Overweight at Morgan Stanley (FTNT)
Fortinet (NASDAQ:FTNT) was upgraded by Morgan Stanley from an “equal weight” rating to an “overweight” rating in a research note issued on Monday, TheFlyOnTheWall.com reports. The firm currently has a $25.00 price objective on the stock. Morgan Stanley’s price objective points to a potential upside of 27.29% from the company’s current price.
The analysts wrote, “FTNT remains one of the best positioned to capitalize on this improved demand given the trend towards consolidated solutions and recent signs of improved execution — US commercial strength accelerating in Q3 to ~20% YoY, while service provider billings stabilized to low single digit growth,” the report noted. “We look for modest acceleration in FTNT’s top-line in CY14 but several factors lead us to believe this could be conservative: 1) our survey work / channel checks point to a better security demand environment in CY14, 2) our field work indicates FTNT competes well for that demand as the shift towards consolidated solutions continues, and 3) with robust investments in sales capacity in CY13, productivity trends should continue to improve in CY14.” Some highlights from the report include:-”Better Billings Growth + Improved Margins = Accelerating FCF Growth.”-”Multiple Has Room to Move Higher.”
Fortinet (NASDAQ:FTNT) traded up 0.41% during mid-day trading on Monday, hitting $19.64. The stock had a trading volume of 6,298,952 shares. Fortinet has a 1-year low of $16.29 and a 1-year high of $25.35. The stock’s 50-day moving average is $18.5 and its 200-day moving average is $19.82. The company has a market cap of $3.210 billion and a P/E ratio of 61.12. Fortinet also was the target of some unusual options trading activity on Friday. Stock traders purchased 35,230 call options on the stock. This is an increase of approximately 702% compared to the typical volume of 4,392 call options.
A number of other firms have also recently commented on FTNT. Analysts at Robert W. Baird upgraded shares of Fortinet from a “neutral” rating to an “outperform” rating in a research note to investors on Monday, December 23rd. They now have a $25.00 price target on the stock, up previously from $24.00. Separately, analysts at Nomura reiterated a “positive” rating on shares of Fortinet in a research note to investors on Tuesday, December 10th. Finally, analysts at Bank of America Corp. upgraded shares of Fortinet from a “neutral” rating to a “buy” rating in a research note to investors on Tuesday, December 3rd. They now have a $24.00 price target on the stock, up previously from $16.75. Twelve equities research analysts have rated the stock with a hold rating and fifteen have given a buy rating to the stock. Fortinet currently has an average rating of “Buy” and a consensus target price of $24.05.
Fortinet, Inc (NASDAQ:FTNT) provides network security solutions.
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