Fortinet's recurring revenues climb as demand for SASE and SecOps solutions drives its subscription model forward.
Fortinet beats Check Point with superior growth momentum, stronger SASE positioning, and firewall refresh catalysts.
Over the past few months, market momentum has surged, with several sectors outperforming the broader market. While financials, technology, and even utilities have all shown strength, the cybersecurity industry remains a consistent outperformer.
We rate Fortinet a Strong Buy with a $148 price target, driven by a subscription-led mix shift and unified platform momentum. Accelerating SASE and AI-powered SecOps adoption, plus a dominant firewall franchise, support recurring revenue durability and double-digit EPS growth through FY27. Valuation offers a 44% upside with a 50x FY26E P/E, below historical and peer medians, providing a margin of safety and asymmetric risk/reward.
The cybersecurity industry enjoys robust growth, with remote work, cloud, and AI providing strong tailwinds for Fortinet. Fortinet is led by its founders, who have a proven track record and a substantial stake in the company. Margin expansion, strong revenue growth, and high ROIC highlight Fortinet's focus on profitability versus peers.
In the latest trading session, Fortinet (FTNT) closed at $105.72, marking a +2.53% move from the previous day.
FortiGate continues to power FTNT's growth with mid-teens hardware gains and new launches like the 700G series for enterprises.
Fortinet's unified SASE strategy fuels growth, but premium valuation and fierce competition keep the stock in hold territory.
Fortinet (FTNT) concluded the recent trading session at $104.44, signifying a +1.25% move from its prior day's close.
Fortinet (FTNT) concluded the recent trading session at $100.84, signifying a -1.98% move from its prior day's close.
Fortinet (FTNT) reached $101.95 at the closing of the latest trading day, reflecting a +1.11% change compared to its last close.
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