Fortinet Inc (FTNT) Shares Down in Pre-Market After Downgrade

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Shares of Fortinet Inc (NASDAQ:FTNT) are trading down over 5% in the pre-market this morning after stock analyst Piper Jaffray issued a downgrade early today. They have changed their rating on the stock from Overweight to Neutral, in preparation for the company’s earnings release on January 28th. This downgrade comes after Cowen upgraded the stock back on December 14, 2015 from Underperform to Market Perform.

“Our downgrade is based on a number of factors, including waning demand trends highlighted in our 4Q15 reseller survey, a shift in spending priorities noted in our 2016 CIO survey, increasing pricing pressure and difficult comparisons,” explained Andrew Nowinski, the Piper Jaffray analyst responsible for the downgrade. “Despite trading at a modest discount to peers, we believe Fortinet could struggle to exceed expectations for the aforementioned reasons and therefore we believe the current valuation appropriately balances the risk/reward.”

Nowinski also cut his target from $30 to just $20, and this apparently has caused many investors to become bearish on the stock.The stock closed at $26.46 during the last trading session. It is down 35.57% since June 15, 2015 and is downtrending. It has underperformed the S&P500 by 26.71%.

From a total of 15 analysts covering Fortinet Inc. (NASDAQ:FTNT) stock, 11 rate it a “Buy”, 0 a “Sell”, and 4 a “Hold”. This means that 73% of the ratings are positive. The highest target price is $56 while the lowest target price is $35. The mean of all analyst targets is $47.46 which is 79.37% above today’s ($26.46) stock price. Fortinet Inc. was the topic of 23 analyst reports since July 23, 2015 according to the firm StockzIntelligence Inc. Barclays Capital maintained shares on January 6 with a “Overweight” rating. Topeka Capital Markets maintained FTNT stock in a recent report from October 26 with a “Hold” rating. Finally, UBS maintained the stock with a “Buy” rating in a report they issued on an October 23.

Fortinet, Inc. provides cyber security solutions to enterprise, service providers and government organizations across the world. The company has a market cap of $4.53 billion. The Company’s network security solution consists of FortiGate physical and virtual appliance products that provide an array of integrated security and networking functions to protect data, applications and users from network-and content-level security threats. It has 266.63 P/E ratio. The Company’s’ FortiGate appliances may be deployed as Next Generation Firewalls , Data Center Firewalls (DCFW), Unified Threat Management (UTM) systems, Internal Network Firewall (INFW), Virtual Machine Firewalls or Cloud Firewalls.

#focuskw=’Fortinet Inc (NASDAQ:FTNT)’##metadesc=’Shares of Fortinet Inc (NASDAQ:FTNT) are trading down over 5% in the pre-market this morning after stock analyst Piper Jaffray issued a downgrade early today. They have changed their rating on the stock from Overweight to Neutral, in preparation for the company’s earnings release on January 28th. This downgrade comes after Cowen upgraded the stock back on December 14, 2015 from Underperform to Market Perform.

“Our downgrade is based on a number of factors, including waning demand trends highlighted in our 4Q15 reseller survey, a shift in spending priorities noted in our 2016 CIO survey, increasing pricing pressure and difficult comparisons,” explained Andrew Nowinski, the Piper Jaffray analyst responsible for the downgrade. “Despite trading at a modest discount to peers, we believe Fortinet could struggle to exceed expectations for the aforementioned reasons and therefore we believe the current valuation appropriately balances the risk/reward.”

Nowinski also cut his target from $30 to just $20, and this apparently has caused many investors to become bearish on the stock.’##metarobot=’index’##newskw=’Sony Corp (ADR) news,Sony Corp (ADR) – (NYSE:SNE),NYSE:SNE Analyst rating analysis,Stock Analysis,Outlook and potential,SNE Price change and trend,SNE stock update’##sitemap=’include’##skipsocial##stockticker=’NASDAQ:FTNT’#

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