Fortinet (NASDAQ:FTNT) added strength first thing Monday morning after being upgraded to buy from neutral by Bank of America. The Wall Street firm cited Fortinet’s solid execution and strong underlying demand.
Elsewhere on the ratings front, Citi analyst Fatima Boolani reiterated her buy rating on Fortinet shares, while raising her per-share price target to $73 from $67, noting the strength in billings and revenue, especially in the face of an uncertain economy.
"Billings, revenue, and product each not only met/exceeded 30% growth thresholds, but landed comfortably above buyside expectations, as FTNT executes well in a macro that has caught many flat-footed," Boolani wrote in an investor note.
Moreover, Morgan Stanley analyst Hamza Fodderwala reiterated the firm's overweight rating on Fortinet, noting that not only were the first-quarter results "strong," but that the 30% free cash flow yield is "underpriced in the shares."
During the period, Fortinet earned an adjusted 34 cents per share on $1.26 Billion, topping estimates of 29 cents and $1.2 Billion.
Billings rose 30% year-over-year to $1.5 Billion, while service revenue rose 30% year-over-year to $761.6 Million.
Looking to the second-quarter, Fortinet expects revenue to be between $1.28 Billion and $1.32 Billion, with billings between $1.56 Billion and $1.6 Billion.
For the full-year, Fortinet expects revenue between $5.425 Billion and $5.485 Billion, with billings between $6.75 Billion and $6.81 Billion.
FTNT shares increased in price $1.31, or 2%, to $65.91.
