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Fortinet Dips Following BofA Downgrade -Breaking

by Mike Robinson

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© Reuters.

Sam Boughedda

Investing.com — Fortinet Inc (NASDAQ:) stock fell 1.6% Friday after BofA analyst Tal Liani cut it to neutral from buy. Stock performance is being affected by high expectations.

Liani stated that the company was performing well with billings rising by 35.9% YoY in 4Q21 and billing growth guidance for 1Q/FY22 at 25.8% YoY and 30.1% respectively.

Analysts noted that strong past performances have seen shares rise 76% over the last twelve months. However, they already see high expectations impacting stock performance with the stock up only 3% and volatility increasing since the company reported its strong 4Q21 results. This is a testament to the difficulty to meet Street expectations after years of solid performance.

BofA analysts also reduced the price target for Fortinet shares from $385 down to $355 to reflect current valuation.

Fortinet shares fell to $322.03 last Friday. Now, they trade over the $331 mark.

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