Analysts were scrambling to boost their price targets on Fortinet (FTNT) - Get Fortinet Inc. Report after the cybersecurity software company blew past analysts' expectations with a third-quarter growth surge.
Analysts at Mizuho Securities, BMO Capital and Cowen all hiked their price targets on Fortinet, the Sunnyvale, Calif.-based company.
Fortinet's stock price jumped 11.48% to $90.92 after the company reported quarterly earnings of 67 cents a share, beating the estimate of 56 cents a share of analysts surveyed by Zacks Investment Research.
BMO Capital lifted its price target to $104 a share, up from $100, placing a market perform rating on Fortinet's stock. Mizuho hiked its price target to $92 a share, up from $86, with a neutral rating on the stock, while Cowen bumped its target to $88 from $85, with a market perform rating
Analysts at BMO called Fortinet's third-quarter numbers "solid across the board." And while billings growth cooled, the company's overall growth rate was "nonetheless impressive vs. the current valuation."
Cloud, SD-WAN and Fortinet Security Fabric products helped drive a 21% jump in growth during the third quarter, with revenue rising to $547.5 million, up from $453.9 million during the same period a year ago, the company said.
Cowen analysts wrote they were "encouraged by the building momentum across FTNT's portfolio." Fortinet also has a "sizable opportunity" over the next few years for its SD-WAN technology, though slowing demand for security equipment may also has to be factored in, analysts at the firm cautioned.