Fortinet, Inc.

Fortinet had a mixed set of fourth-quarter results with revenues failing to meet Wall Street expectations despite market share gains. The company succeeded in delivering an earnings beat and held on to its market positioning. Its 42% product revenue growth has made the company one of the top product revenue companies in the cybersecurity industry. Despite the difficulties and challenges in the global supply chain network, Fortinet continues holding on to its position in the market. It continues to focus on the advancement of cybersecurity solutions to offer significant value to consumers while attempting to reduce the in-house operational difficulties as well. Among key updates, the company announced the launch of the fifth-generation Forti Security processor, the FortiSP5 which is a SOC base for the ASIC and offers secure computing power ratings for major network security functions. We give the company a ‘Hold’ rating with a revised target price.