UBS Lowers Fortinet Price Target to $90 Amidst Lower Growth Expectations

UBS analyst Fatima Boolani lowered Fortinet's price target to $90 from $105 while maintaining a Neutral rating. Despite decent 2Q results, the firm noted the company cut its 2H services revenue guidance by $50 million and revised down its 2026 End of Service Life refresh opportunity assumptions. Expected growth in the 4Q looks weaker, with success with newer products needed to contribute more materially. The stock is fairly priced for a low double-digit growth story but has more questions than answers around CY26.

Title: Fortinet's Price Target Lowered Amid Revenue Guidance Cuts

UBS analyst Fatima Boolani has revised Fortinet's (NASDAQ:FTNT) price target from $105 to $90, maintaining a "neutral" rating. This adjustment comes following Fortinet's second-quarter results, which were mixed. While the company reported earnings per share (EPS) of $0.64, surpassing the consensus estimate of $0.59, the firm noted a significant cut in its second-half services revenue guidance by $50 million. Additionally, Fortinet revised down its assumptions for the 2026 End of Service Life refresh opportunity. The expected growth in the fourth quarter appears weaker than previously anticipated, with the company needing to demonstrate success with its newer products to contribute more materially to its revenue.

Despite these setbacks, Fortinet's stock has been trading relatively well, with shares down by $24.87 during mid-day trading on August 7, 2025, reaching $71.71. The company's one-year low is $67.97 and its one-year high is $114.82. Fortinet's current ratio is 1.36, quick ratio is 1.29, and debt-to-equity ratio is 0.25. The 50-day and 200-day moving averages are $102.85 and $101.88, respectively, indicating a stable trading pattern.

However, analysts remain cautious about Fortinet's outlook, particularly concerning the company's firewall refresh cycle. Many of its customers have firewall devices nearing their end-of-service life, which could lead to a downturn in business spending. The broader cybersecurity market, however, has shown resilience against these headwinds.

Institutional investors and hedge funds have also been adjusting their positions. Eagle Capital Management LLC, Brighton Jones LLC, Envestnet Asset Management Inc., and DRW Securities LLC have increased their stakes in Fortinet during the fourth quarter. Additionally, Fortinet's CEO Ken Xie and VP Michael Xie sold shares of the company's stock, indicating a potential shift in insider sentiment.

Overall, Fortinet's stock is fairly priced for a company with low double-digit growth, but the company faces several challenges, including the impact of tariffs, the ongoing firewall refresh cycle, and the need for stronger performance from its newer products. Investors should closely monitor these factors as Fortinet navigates its way through the fourth quarter and into 2026.

References:
[1] https://www.marketbeat.com/instant-alerts/ubs-group-issues-pessimistic-forecast-for-fortinet-nasdaqftnt-stock-price-2025-08-07/
[2] https://finance.yahoo.com/news/fortinet-ftnt-price-target-cut-205510107.html
[3] https://finance.yahoo.com/news/fortinet-signals-strength-sase-ai-210142889.html