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Opinions Joe Terranova
Fortinet IncFTNTBUY ON WEAKNESSJun 21, 2023
Stock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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Begrudgingly, got out of this one as well -- mainly because of the price action. Great story on paper, but there were more sellers than buyers in the market, and you have to respect that. Last summer it actually got hacked, so it's suffering more than the others.
On the 3-year chart you can draw a line through a level of support around $80, and it's sitting on that right now. There are "reversal levels", where something that's resistance becomes support. He's also noticed that markets are drawn to round numbers.
So $80 is a key long-term level for FTNT, and it's starting to fail. Even 50 cents or so below key support is enough to show that the failure isn't just a blip. More importantly, it hasn't gotten back above it. Quite troubling.
Looks cheaper than others due to the very conservative nature of management, they always sandbag the earnings. His 12-month price target is $117. International. Hardware and software licenses, which make it a little bit different. Really, really likes it. No dividend.
(Analysts’ price target is $100.79)
Kim BoltonHe took profits and switched to CRWD on its weakness. Really likes the space; attacks are only going to get more plentiful and more challenging. It's more expensive for companies to suffer attacks than to pay a company for cybersecurity. Looks decent technically, wants to see profits. If it corrects nicely, he'd look at it again.
He still owns it, one of the best performers over the summer. Conservative in reporting, taken to the woodshed for that, but has come back very well.
Kim Bolton
Cybersecurity stocks are back today. Don't trade, but invest in cyber. He's very bullish cybersecurity. Of the big three, though, Fortinet has the best balance sheet in the sector.
Joe Terranova
He bought this in early March at $126 and sold it today at $147. It's the least profitable cybersecurity stock and he's a little troubled by the rising move in interest rates, not peaking as he expected. So stocks like Crowdstrike will be challenged. This is a valuation trade, and he will buy Palo Alto and/or Fortinet at a lower price (they have lower valuations). Ring the register and take profits. Fortinet generates strong free cash flow, and also scores well in ROE and debt-to-equity. Maybe not a super balance sheet, but they have the flexibility to do the things they want, because they have profits today. So, they're less reliant on funding from the debt markets and less effected by rising rates.