2023-05-05 13:40:58 ET
Fortinet ( NASDAQ: FTNT ) shares surged more than 6% on Friday after the cybersecurity company posted first-quarter results and guidance that impressed Wall Street analysts.
Citi analyst Fatima Boolani reiterated her buy rating on Fortinet ( FTNT ) shares, while raising her per-share price target to $73 from $67, noting the strength in billings and revenue, especially in the face of an uncertain economy.
"Billings, revenue, and product each not only met/exceeded 30% growth thresholds, but landed comfortably above buyside expectations, as FTNT executes well in a macro that has caught many flat-footed," Boolani wrote in an investor note.
During the period, Fortinet ( FTNT ) earned an adjusted 34 cents per share on $1.26B, topping estimates of 29 cents and $1.2B.
Billings rose 30% year-over-year to $1.5B, while service revenue rose 30% year-over-year to $761.6M.
Looking to the second-quarter, Fortinet ( FTNT ) expects revenue to be between $1.28B and $1.32B, with billings between $1.56B and $1.6B.
For the full-year, Fortinet ( FTNT ) expects revenue between $5.425B and $5.485B, with billings between $6.75B and $6.81B.
Morgan Stanley analyst Hamza Fodderwala reiterated the firm's overweight rating on Fortinet ( FTNT ), noting that not only were the first-quarter results "strong," but that the 30% free cash flow yield is "underpriced in the shares."
Several other cybersecurity stocks rose on back of the results, including Palo Alto Networks ( PANW ), CyberArk Software ( CYBR ) and Zscaler ( ZS ).
More on Fortinet and cybersecurity
- As IT budgets tighten, cybersecurity companies see growing demand
- Goldman leans to growth picks in either recession scenario
- Palo Alto Networks, Fortinet lead cybersecurity as tech spending tightens
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Fortinet stock surges as Q1 results, outlook gets Wall Street praise