FBN Securities initiated coverage of Fortinet Inc. (NASDAQ:FTNT), a provider of network security appliances, with an "Outperform" rating and price target of $26.00.
Shebly Seyrafi, an analyst at FBN, said the Sunnyvale, California-based company is the largest player in the unified threat management (UTM) market, which is a $1.5-$2B annual market growing at around 12-14%/year, with FTNT outgrowing the industry.
Other key positives include the company's strong technology with its FortiASIC ASIC and success recently with its high-end solutions, Seyrafi wrote in a note.
Seyrafi models Q4 revenue/EPS of $123M/$0.13, ahead of consensus of $116M/$0.12 (and guidance of $114-116M/$0.12).
The stock, which has been trading in the 52-week range between $15.78 and $28.56, is currently trading 1.62 percent higher at $20.95.
