Fortinet Inc (NASDAQ:FTNT) shares are trading higher on Friday following an analyst upgrade. Here’s what you should know today.
Fortinet’s Upgrade
TD Cowen analyst Shaul Eyal upgraded Fortinet from Hold to Buy while maintaining a $100 price target on the stock.
The analyst pointed to encouraging channel checks that indicate the business is holding steady heading into fiscal 2026, with room for fourth‑quarter 2025 billings and revenue to come in ahead of current expectations, according to Investing.com. Those estimates call for year‑over‑year growth of 11.6% and 13.3%, respectively.
TD Cowen said the stock’s current level offers “a favorable entry point for a consistent rule‑of‑45‑plus performer.” Its $100 price target is built on a 9x enterprise‑value‑to‑FY27‑revenue multiple and roughly 27x enterprise‑value‑to‑FY27 free cash flow.
Technical Analysis
The stock is currently trading 5.9% above its 20-day simple moving average (SMA) and 1.6% above its 100-day SMA, demonstrating some short-term strength. However, shares have decreased 14.73% over the past 12 months and are positioned closer to their 52-week lows than highs.
The RSI is at 44.62, which is considered neutral territory, while MACD is below its signal line, indicating bearish pressure on the stock. The combination of neutral RSI and bearish MACD suggests mixed momentum.
- Key Resistance: $87.00
- Key Support: $77.00
Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $87.14. Recent analyst moves include:
- TD Cowen: Upgraded to Buy (Maintains Target to $100.00) (Jan. 23)
- Citigroup: Neutral (Raises Target to $85.00) (Jan. 13)
- Piper Sandler: Neutral (Raises Target to $90.00) (Jan. 5)
Valuation Insight: While the stock trades at a premium P/E multiple, the consensus and 4% expected earnings decline suggest analysts view this growth as justification for the 4% upside to analyst targets.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Fortinet, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 1.89) — Stock is trading at a steep premium relative to peers.
- Momentum: Strong (Score: 8.34) — Stock is outperforming the broader market.
The Verdict: Fortinet’s Benzinga Edge signal reveals a classic “High-Flyer” setup. While the Momentum (8.34) confirms the strong trend, the very low Value (1.89) score warns that the stock is priced for perfection — investors should ride the trend but use tight stop-losses.
FTNT Price Action: Fortinet shares were up 5.17% at $81.63 at the time of publication on Friday, according to Benzinga Pro.
Image: JHVEPhoto/Shutterstock
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