Do Wall Street Analysts Like Fortinet Stock?

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2 days ago

Sunnyvale, California-based Fortinet, Inc. (FTNT) provides network security appliances and unified threat management network security solutions to enterprises, service providers, and government entities. With a market cap of $80.3 billion, Fortinet's operations span various countries in North America, Latin America, EMEA, and Asia-Pacific.
The tech giant has significantly outperformed the broader market over the past year. FTNT stock prices soared 10.9% in 2025 and 82.6% over the past year, outpacing the S&P 500 Index's ($SPX) 8.3% gains in 2025 and 16.6% surge over the past year.
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Narrowing the focus, while Fortinet has slightly lagged behind the Technology Select Sector SPDR Fund's (XLK) 13.6% gains on a YTD basis, it has significantly outpaced XLK's 22.7% returns over the past 52 weeks.
Despite beating the Street's expectations, Fortinet's stock price plunged 8.4% in the trading session after the release of its Q1 results on May 7. Driven by growth in product and service revenues, the company's overall topline surged 13.8% year-over-year to $1.5 billion, exceeding the consensus estimates by a small margin. Furthermore, its non-GAAP operating margin expanded by 570 basis points year-over-year to a first quarter record of 34%, leading to a 36.3% growth in non-GAAP operating income to $526.2 million. Meanwhile, its non-GAAP EPS of $0.58 surpassed the Street's estimates by 9.4%.
However, the company's full-year guidance failed to meet expectations and made investors jittery.
For the full fiscal 2025, analysts expect Fortinet to deliver an adjusted EPS of $2.49, marking a 5% growth year-over-year. Further, the company has a solid earnings surprise history. It has surpassed the Street's bottom-line estimates in each of the past four quarters.
Fortinet has a consensus 'Moderate Buy' rating overall. Of the 41 analysts covering the stock, opinions include 13 'Strong Buys,' 26 'Holds,' and two 'Strong Sells.'
This configuration has been mostly stable over the past months.
On Jun. 18, Rosenblatt Securities analyst Catharine Trebnick maintained a 'Buy' rating on Fortinet and set a price target of $125.
FTNT's mean price target of $108.65 suggests a modest 3.7% upside from current price levels, while the street-high target of $135 represents a 28.9% premium to current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com