Fortinet downgraded to Equal Weight from Overweight at Barclays

Barclays downgraded Fortinet to Equal Weight from Overweight with a price target of $63, down from $71, ahead of the Q3 results. The analyst cites the firm’s incrementally negative channel checks, lower prioritization of firewall refresh in its chief investment office survey, and risk to the multiple at 23-times fiscal 2024 free cash flow for the downgrade. However, the firm thinks there’s a balanced risk/reward at current levels and that Fortinet’s platform approach gives the stock terminal value.