Stock Price & Analysis

Based on the latest analyst ratings and technical indicators, Fortinet (FTNT) shows mixed signals at the current price of $94.51.

Technical Analysis The RSI of 47.79 indicates neutral momentum, slightly leaning towards oversold territory. The stock is trading near its 20-day SMA of $95.35, suggesting a period of consolidation. The MACD at -0.22 signals slight bearish momentum in the near term.

Analyst Consensus Recent analyst actions show a balanced view:

• Raymond James downgraded to Hold from Buy on January 14, citing concerns about valuation after the 70% rally
• Piper Sandler upgraded to Buy with $120 target on January 6, expecting firewall cycle ramp-up in 2025
• Goldman Sachs maintains Strong Buy with $114 target, highlighting platform strategy execution

Price Targets The most recent analyst price targets range from:

• Bearish: Mizuho at $78 (-17.5% downside)
• Bullish: Piper Sandler at $120 (+27% upside)

Given the mixed signals and current market conditions, holding FTNT stock appears more prudent than initiating new positions at current levels. The upcoming firewall refresh cycle in 2025 could provide upside, but current valuation and technical indicators suggest waiting for a better entry point.

Based on the provided data and recent market trends, here's a concise price prediction for FTNT stock in 2025:

Fortinet (FTNT) is expected to reach $105-110 by end of 2025, driven by its strong competitive position in cybersecurity and custom ASIC chip advantage. The company's revenue is projected to grow 13% in 2025 with continued expansion in its Security Fabric ecosystem across cybersecurity, networking and hybrid cloud markets.

The stock currently trades at 37x forward earnings, significantly lower than competitor Palo Alto Networks' 53x multiple, suggesting potential for multiple expansion as growth accelerates.

The S1 support level for FTNT Stock is $91.9 ,The R1 resistant level for FTNT Stock is $97.66.

As of the end of day on 2025-01-24, the price of FTNT Stock was $97.

The target price for FTNT Stock according to analyst rating is 99.85, with the highest price target at 120.00 and the lowest at 76.00. Analysts have a Moderate Buy rating on FTNT Stock overall.

The market cap of FTNT is $74.3B.

Based on the provided data and recent market analysis, here's a comprehensive evaluation of FTNT's valuation:

Valuation Analysis FTNT currently shows mixed valuation signals with a P/E ratio of 39.11 in Q3 2024, which has fluctuated from 44.57 in Q1 to 35.64 in Q2. The EV/EBITDA ratio stands at 28.07, while the P/S ratio is at 10.47, indicating premium pricing compared to industry averages.

Financial Performance The company demonstrates strong financial health:

• Revenue grew consistently from $1.35B in Q1 to $1.51B in Q3 2024
• Net income showed impressive growth from $299.3M to $539.9M
• Gross margin improved from 77.48% to 82.53%
• Net margin significantly increased from 22.12% to 35.80%

Recent Analyst Actions Recent analyst sentiment has been mixed to positive:

• Citigroup maintained Hold rating with PT $101 (Jan 17, 2025)
• Raymond James downgraded to Hold from Buy (Jan 14, 2025)
• Piper Sandler upgraded to Buy with PT $120 (Jan 6, 2025)
• Goldman Sachs maintained Strong Buy with PT $114 (Jan 2, 2025)

Conclusion FTNT appears moderately overvalued when considering traditional metrics, but this premium valuation is partially justified by:

1. Strong margin expansion
2. Consistent revenue growth
3. Solid market position in cybersecurity
4. Custom ASIC advantage over competitors

The stock's current valuation reflects high growth expectations, but the company's execution and financial metrics support its premium pricing, making it relatively fairly valued in the context of its growth and market position.

Fortinet, Inc. provides an integrated platform, the Fortinet Security Fabric, that spans networking, unified Secure Access Service Edge (SASE) and AI-driven security operations to deliver cybersecurity where customers need it. It offers solutions to enterprises, such as in the financial services, retail and operational technology market verticals, communication and security service providers, government organizations and small and medium-sized businesses. Its Secure Networking solutions focuses on the convergence of networking and security via its network firewall and its switches, access points and other secure connectivity solutions. Its Unified SASE solution is a single-vendor SASE solution that includes Firewall, SD-WAN, Secure Web Gateway, Cloud Access Services Broker, and Data Loss Prevention, Zero Trust Network Access and cloud security. Its Security Operations solutions are delivered as a platform that automates detection and response to accelerate discovery and remediation.

Based on Fortinet's strong market position in cybersecurity and recent performance trends, FTNT stock is projected to reach $175-185 by 2030, driven by the company's custom ASIC chip advantage and expanding Security Fabric ecosystem. The company's broad customer base of over 805,000 clients and strategic focus on the convergence of cybersecurity, networking, and hybrid cloud markets positions it well for sustained growth. The lower current valuation at 37x forward earnings compared to peers like Palo Alto Networks suggests significant upside potential as the company continues to execute its balanced growth strategy.

FTNT has a total of 13568 employees.