BMO Capital has increased its price target for Fortinet (NASDAQ:FTNT) to $95.00 from $90.00, while retaining a Market Perform rating on the cybersecurity company’s shares. The research house emphasized that, although Fortinet showed solid performance across many headline metrics, services revenue growth remains a shortfall relative to expectations.
According to InvestingPro data cited by analysts, Fortinet is trading below its Fair Value, with analyst price targets spanning from $70 to $120. BMO pointed to several areas of strength in the company’s latest results, including a notable gross profit margin and year-over-year revenue expansion.
Financial highlights noted by BMO and other analysts:
- Fortinet reported gross profit margins of 80.46%.
- The company posted 14.17% revenue growth over the last twelve months.
- For fourth-quarter 2025 results, Fortinet delivered earnings per share of $0.81, beating the $0.74 consensus.
- Revenue for the same quarter reached $1.91 billion, above the $1.86 billion forecast.
- Management provided fiscal year 2026 billings growth guidance of 13% year-over-year, ahead of the consensus estimate of 11%.
BMO flagged the 13% billings guidance as a positive surprise relative to consensus and suggested there could be upside to topline estimates if execution continues. The firm also expects Fortinet to gain further traction in the Secure Access Service Edge (SASE) market, which could support future revenue growth.
Despite these constructive data points, BMO maintained its neutral view because the lagging services revenue growth disappoints relative to other strong indicators. The firm indicated that a sustained improvement in services revenue would be necessary to shift to a more favorable rating.
Analyst reactions across the street:
- RBC Capital raised its price target to $90 from $85, citing a quarterly performance that exceeded expectations.
- TD Cowen reiterated a Buy rating with a $100 price target, highlighting 20% product revenue growth and 18% billings growth for the year.
- UBS increased its price target to $90 from $80 and kept a Neutral rating, noting robust product growth and stronger Enterprise License Agreement renewal activity.
- Jefferies lifted its price target to $90 from $80 and kept a Hold rating after Fortinet reported 18% year-over-year billings growth.
Taken together, these adjustments reflect a generally positive reaction from several analysts to Fortinet’s quarterly results and billings commentary, even as some research teams remain cautious and maintain neutral or hold stances.
Is FTNT a bargain now? The company’s valuation relative to analyst targets and its Fair Value estimate will be a focus for investors. According to the data referenced by brokers, analyst targets range from $70 to $120.
Investors and market participants will likely watch upcoming services revenue trends and billings execution closely to determine whether sentiment shifts more broadly toward buy ratings.