Looking at the pace of upgrades, Wall Street has fallen back in love with Fortinet (FTNT)
and its growth potential in the unified threat management world. From
12 strong buy/buy ratings three months ago to 18 today, the shares have
gone from a sub-$17 dip in early December back into the low $20's.
Perhaps just as important, though, is a more general recovery in
security market conditions for Fortinet, Check Point (CHKP), and Palo Alto Networks (PANW).
Execution
is still a concern, as the company needs to reverse this recent slide
in margins. Likewise, there are still questions as to whether Fortinet's
proprietary ASIC-driven performance advantages can stay relevant as the
security market evolves. Those are valid questions, but I think
Fortinet is likely to be a long-term winner, unless a buyout precludes
that opportunity. The 25% rally in the shares has taken some of the
cheapness away, but I still think this is an undervalued tech stock
worth further research.
Continue reading here:
New Products, An Improving Market Helping Fortinet
No comments:
Post a Comment