Fortinet downgraded to In Line from Outperform at Evercore ISI

Evercore ISI downgraded Fortinet to In Line from Outperform with a price target of $51, down from $78. The company’s Q3 revenue and billings miss and guide down are attributable to a slowdown in the firewall market and sales/marketing challenges, the analyst tells investors in a research note. The firm remains confident in Fortinet’s management team and ability to execute longer term, but thinks its reorganization around the secure networking, security operations, and universal SASE core growth areas could introduce some level of uncertainty near-term as current growth headwinds in the firewall appliance market will magnify the need for the company to deliver.