Peeling Back The Layers: Exploring Fortinet Through Analyst Insights

Providing a diverse range of perspectives from bullish to bearish, 21 analysts have published ratings on Fortinet FTNT in the last three months.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $59.33, a high estimate of $75.00, and a low estimate of $49.00. This current average represents a 17.43% decrease from the previous average price target of $71.85.

Breaking Down Analyst Ratings: A Detailed Examination

A clear picture of Fortinet's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Fortinet. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Fortinet compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Fortinet's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Fortinet's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Fortinet analyst ratings.

Delving into Fortinet's Background

Fortinet is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, zero-trust access, and security operations. The firm derives a majority of its revenue through sales of its subscriptions and support-based business. The California-based firm has more than 700,000 customers across the world.

Fortinet: A Financial Overview

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Fortinet's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2023, the company achieved a revenue growth rate of approximately 16.1%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Fortinet's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.19% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Fortinet's ROE excels beyond industry benchmarks, reaching 163.37%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Fortinet's ROA stands out, surpassing industry averages. With an impressive ROA of 4.32%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Fortinet's debt-to-equity ratio stands notably higher than the industry average, reaching 13.38. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Understanding the Relevance of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

This article was generated by Benzinga's automated content engine and reviewed by an editor.