Fortinet initiated with a Hold at Needham

Needham analyst Matt Dezort initiated coverage of Fortinet with a Hold rating and no price target. While the company has executed “superbly” over the last few years, its Q2 results and the Q3 outlook disappointed, raising questions around growth durability, the analyst tells investors in a research note. The firm says inventory digestion following a multi-year period of elevated product growth and deal push-outs late in the quarter weighed on results and triggered a tempered outlook. Needham looks for a bottom in billings growth and an adjustment to long-term targets before getting more constructive on the shares.