Last Updated: 16 Sep 2024
Executive Summary
Fortinet Inc. (FTNT) is a leading provider of cybersecurity solutions. The company has a strong track record of growth, with revenue increasing by 10.9% year-over-year in the latest quarter. Fortinet is also profitable, with a net income margin of 23.7%. The company's stock is currently trading at $76.34, which is below the analyst target price of $72.84.
Company Overview
Fortinet was founded in 2000 and is headquartered in Sunnyvale, California. The company develops and sells a range of cybersecurity solutions, including firewalls, intrusion prevention systems, and endpoint security components. Fortinet's products are used by a wide range of customers, including businesses, governments, and educational institutions.
Fundamental Analysis
Fortinet's financial performance has been strong in recent years. The company's revenue has grown by an average of 15% per year over the past five years. Fortinet is also profitable, with a net income margin of 23.7%. The company's gross profit margin is 60.2%, which is higher than the industry average.
Fortinet's balance sheet is also strong. The company has $3.5 billion in cash and equivalents, and no debt. Fortinet's current ratio is 1.5, which is above the industry average.
Technical Analysis
Fortinet's stock price has been trending higher in recent months. The stock is currently trading above its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 65, which indicates that the stock is overbought.
Short Term Outlook
Fortinet's stock price is likely to continue to trend higher in the short term. The company's strong financial performance and positive analyst sentiment are likely to support the stock price.
Long Term Outlook
Fortinet's long-term outlook is also positive. The company is a leader in the cybersecurity market, and the demand for cybersecurity solutions is expected to continue to grow in the years to come. Fortinet is well-positioned to capitalize on this growth and continue to grow its business.
Analyst Recommendations
Analysts are bullish on Fortinet's stock. The average analyst target price is $72.84, which is 10% above the current stock price. Five analysts have a strong buy rating on the stock, 11 have a buy rating, and 28 have a hold rating.
