Fortinet (FTNT) Downgraded to Hold: Analyst Warns of Slower Growth Ahead

Fortinet, Inc. (NASDAQ:FTNT) is one of the AI Stocks On Wall Street’s Radar. On August 14, Erste Group analyst Hans Engel downgraded the stock from Buy to Hold. The downgrade comes amid concerns about the company’s operating margins and future growth prospects.

“Revenue this year should be in the range of around USD 6.7 – 6.8 billion. The forecast for service revenue was recently revised slightly downwards. The operating margin will amount to approx. 32% – 33.5%. The operating margin is therefore below that of the peer group. This is not expected to change in the next two years. Sales growth in the coming year will also be lower than this year.”

A portfolio manager wearing a suit and tie, looking at a graph representing the growth of the business development company.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $90 implies a 13.7% upside; however, the Street-high target of $120 implies an upside of 51.7%.

Fortinet, Inc. (NASDAQ:FTNT), a cybersecurity company, provides enterprise-level next-generation firewalls and network security solutions, leveraging artificial intelligence across its cybersecurity products.

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