UPDATE: Morgan Stanley Downgrades Fortinet Inc
Fortinet Inc (NASDAQ: FTNT) on Monday was downgraded by Morgan Stanley from Overweight to Equal-Weight, while the $29 price target was maintained.
The report from analysts Keith Weiss and Melissa Goram projected that sustained billings growth will be challenging in FY 2015.
According to Weiss, "Fortinet has ramped up investments in sales and marketing and R&D over the past several quarters to drive better top-line growth...these investments have beared fruit, with billings growth accelerating to 30 percent YoY in 1H. However, despite better growth, sales productivity continues to trend lower with product billings per $ of S&M spend down over the past six quarters."
The report indicated that while Weiss is keeping the price target at $29 , they see other names with more absolute upside, such as salesforce.com, inc., Palo Alto Networks Inc., Splunk Inc. and Tableau Software Inc..
Fortinet traded at $24.97 in the premarket, down 2.27 percent.
Latest Ratings for FTNT
Oct 2014 | Morgan Stanley | Downgrades | Overweight | Equal-weight |
Aug 2014 | Piper Jaffray | Initiates Coverage on | Overweight | |
Jul 2014 | JMP Securities | Maintains | Market Outperform |
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