What happened
A price target raise from an analyst was the fuel that powered Fortinet's (NASDAQ: FTNT) stock higher at the start of the trading week. The cybersecurity company's shares leaped nearly 5% skyward on the day, well outpacing the 0.2% rise of the S&P 500 index.
So what
That morning, Morgan Stanley prognosticator Hamza Fodderwala upped his price target on Fortinet stock to $84 per share. That's a nearly 10% lift from his previous level of $77. Fodderwala maintained his recommendation of overweight -- buy, in other words -- on the cybersecurity company's shares.
The analyst's new take on Fortinet came as part of a broader review of the cybersecurity sector. Although he feels the industry is facing a challenging period at the moment, several companies have a good chance of withstanding the headwinds. In addition to Fortinet, Fodderwala also flagged CrowdStrike, Palo Alto Networks, and Check Point Software Technologies as potential outperformers.
The pundit believes that the situation for cybersecurity companies is improving in this second half of the year. He cited bottled-up demand as well as "budget flush" from clients as two key reasons for this.
Now what
The price target lift makes Fodderwala one of the more bullish professionals tracking Fortinet stock. While several rate it with the equivalent of a buy, the average analyst price target is $76.65 -- slightly less than Fodderwala's previous level.
It should be emphasized that the Morgan Stanley prognosticator's take is only one opinion of many about Fortinet's prospects. While he is certainly well versed in its business, potential investors should study the work of other analysts and gauge their evaluations of the company. A personal, and objective, review of its finances and regulatory filings is also a must.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Check Point Software Technologies, CrowdStrike, Fortinet, and Palo Alto Networks. The Motley Fool has a disclosure policy.
