Saturday, July 2, 2022

Fortinet Dips Following BofA Downgrade By


© Reuters.

By Sam Boughedda — Fortinet Inc (NASDAQ:) stock fell 1.6% Friday after BofA analyst Tal Liani cut it to neutral from buy. High expectations are impacting the stock’s performance.

“The company is performing well, with 4Q21 billings up 35.9% YoY and billings growth guidance for 1Q/FY22 of 25.8% and 30.1% YoY, respectively,” said Liani.

The analyst noted that the strong past performance has seen the shares rise 76% in the last 12 months, yet they “already see the high expectations impacting the stock performance, with the stock only up 3% with increased volatility since reporting its robust 4Q21 results, attesting to the difficulties to beat the high Street expectations after a few years of strong performance.”

The BofA analyst also cut the price target on Fortinet shares to $355 from $385 to reflect their current valuation outlook.

Fortinet shares dropped as low as $322.03 Friday. They now trade above the $331 mark.

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