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Jefferies raised the price target on Fortinet (NASDAQ:FTNT) to $80.00 from $70.00 while maintaining a Buy rating, and reassigning the stock as Top Pick in security software.
The firm’s checks indicate stable Q1 fundamentals with a continuation of growth normalization, despite noting that shares outperforming the IGV by 20% year-to-date may raise some risk.
The firm believes Fortinet can achieve 20% year-over-year production growth, despite tougher competition and macro pressures.
The firm expects a prudent update to 2023 billings guidance (20-21% year-over-year) in light of continued and increasing macro pressure, which it believes eventually will culminate in mid-20s growth by year-end. The company historically beat its initial annual guidance by 6% over the last 5 years.
The company will report its Q1/23 earnings results on May 4. Street estimates stand at $0.29 for EPS and $1.2 billion for revenues.
