Opinions
Jason Del Vicario
Fortinet Inc
FTNT-Q
WATCH
May 27, 2024
$61.350
Stock price when the opinion was issued
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He 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.
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TOP PICK
Right at the centre of the cybersecurity ecosystem.
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)
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He used to own CHKP. Both PANW and FTNT are strong businesses, market leaders in the space and taking market share away from CHKP.
Challenge is that PANW and FTNT are really strong in this industry. Good for the consumer, but may not be good for the businesses in that space. At 46x PE, PANW is really expensive, growth needed to justify that valuation is substantial, high valuation keeps him on the sidelines.
Look at the space as a whole to see if you want to be involved, rather than choosing just one player. Does like the aspect of customer "stickiness" in that once a customer signs up, switching costs are high.