On Friday, TD Cowen analyst Shaul Eyal increased the price target on Fortinet stock (NASDAQ:FTNT) to $135 from the previous target of $120, while maintaining a Buy rating on the shares. The adjustment follows Fortinet’s strong fourth-quarter performance, which surpassed key financial metrics. Currently trading at $106.14, the stock appears overvalued according to InvestingPro analysis, despite trading at a P/E ratio of 53x and commanding a market capitalization of $81.4 billion.
Eyal highlighted several factors contributing to Fortinet’s success, including robust demand from the ongoing end-of-service (EOS) firewall refresh cycle, a record number of 6,900 new logo wins, and solid growth in Unified SASE, which increased by 13% year-over-year. Additionally, the company’s Security Operations (SecOps) segment saw double-digit percentage growth. These achievements were slightly bolstered by minor contributions from mergers and acquisitions. InvestingPro data reveals impressive gross profit margins of 79.71% and overall revenue growth of 10.4% in the last twelve months, with total revenue reaching $5.71 billion.
The analyst noted that one-fourth of the installed base of FortiGate units is expected to require replacement by 2026 due to the EOS refresh cycle. Eyal also observed early indications of heightened through-cycle growth, driven by the demand for Fortinet’s energy-efficient next-generation firewalls, such as those powered by the FortiASIC-NP7, within hyperscale data centers. According to InvestingPro, which offers 18 additional valuable insights about Fortinet, the company maintains a "GREAT" financial health score of 3.31, suggesting strong fundamentals to support this growth trajectory.
Eyal expressed optimism for the first quarter of 2025, anticipating another quarter where Fortinet’s performance would exceed expectations and lead to raised forecasts, assuming that there are no escalations in US tariff policies. The new price target of $135 implies a 13x enterprise value to forecasted fiscal year 2026 revenue, and a 41x enterprise value to forecasted fiscal year 2026 free cash flow.
In other recent news, Fortinet has been the focus of several analyst upgrades. RBC Capital Markets lifted the cybersecurity firm’s stock price target to $115 from $97, citing positive quarterly performance and potential upsells related to Secure Access Service Edge (SASE), Security Operations (SecOps), access points, and switches. BMO Capital Markets also raised its price target for Fortinet to $122 from $100, noting strong performance and significantly exceeded expectations in operating margins.
Piper Sandler increased the price target on Fortinet stock to $135 from $120, highlighting strong product growth and record margins. Despite concerns over organic billings in 2025 and potential tariff impacts, Piper Sandler maintains an Overweight rating on the stock. Stifel analysts increased their price target on Fortinet stock to $115, up from $103, reflecting Fortinet’s potential in the forthcoming firewall refresh cycle and its ability to leverage cross-selling opportunities.
Cantor Fitzgerald adjusted its price target for Fortinet shares to $115.00, an increase from the previous target of $110.00, following Fortinet’s reported total billings growth of 7.3% year-over-year. The firm also noted Fortinet’s advancements in SASE and SecOps adoption, contributing to strong Annual Recurring Revenue (ARR) growth. These recent developments underscore Fortinet’s solid performance and potential in the competitive cybersecurity market.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.