Why Fortinet Stock Outpaced the Market on Monday
IT network security stock Fortinet (NASDAQ: FTNT) looked relatively secure on Monday. The company's shares fell on the day, but by less than 0.5% -- a less steep slide than the nearly 0.8% decline of the broad S&P 500 index. A positive new research note from a prominent investment bank -- complete with an upgrade and price target lift -- was a key reason why.
Morgan Stanley's Hamza Fodderwala feels that Fortinet is underappreciated by the market, and consequently has upgraded his recommendation on the stock from equal weight to overweight (from neutral to buy, in other words). He also gave its price target a modest bump: He now believes shares of the cybersecurity company will hit $69 within the next year, up from his previous target of $66.
In Fodderwala's view, demand for IT security solutions "remains durable" even in this rather shaky macroeconomic environment, in which many individuals and companies are concerned about inflation and growth.
Source Fool.com
