Morgan Stanley Downgrades Fortinet, Inc. (FTNT) from Equal Weight to Underweight, Reduces Its Price Target to $67

With significant upside potential, Fortinet, Inc. (NASDAQ:FTNT) secures a spot on our list of the 13 Best Quality Stocks to Buy According to Hedge Funds.

On September 2, Fortinet, Inc. (NASDAQ:FTNT) was downgraded from Equal Weight to Underweight by Morgan Stanley, which also reduced its price target from $78 to $67 due to worries that the fiscal 2026–2027 firewall refresh cycle would be shorter than expected, which might put pressure on future profit projections.

Fortinet, Inc. (NASDAQ:FTNT) is still growing its product line, adding SASE and SecOps solutions to its installed base, and keeping a healthy financial position with more cash than debt and excellent free cash flow creation despite the downgrade.

Driven by major corporate momentum, the company’s second-quarter 2025 results exceeded profitability and billings predictions and reached revenue expectations, albeit subscription revenue growth slowed somewhat. Morgan Stanley acknowledged Fortinet, Inc. (NASDAQ:FTNT)’s ongoing success in growing its U.S. sales and upselling other products, but pointed out that its short-term view reflects possible challenges.

Network firewalls, wireless local area networks, secure switches, access points, and 5G connectivity gateways are just a few of the cybersecurity solutions and networking and security technologies that Fortinet, Inc. (NASDAQ:FTNT) offers globally. It is one of the best quality stocks.

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