Fortinet, Inc. (FTNT) Balances Growth Outlook With AI Innovation

Fortinet, Inc. (NASDAQ:FTNT) is one of the best high-growth cybersecurity stocks to buy. On February 6, UBS analyst Fatima Boolani raised Fortinet’s (NASDAQ:FTNT) price target to $90 from $80 while keeping a Neutral rating. She said Q4 results were strong, with product growth and better contract renewals, and the 2026 outlook showed 10–15% product growth, 11–14% billings growth, operating margins of 33–36%, and free cash flow margins in the mid-to-high 30s.

Although this eased some investor worries, service revenue growth of roughly 11% year-over-year leaves questions about sustaining 12%+ growth as comparisons tighten in late 2026 and 2027. UBS views the stock at 22x EV/FCF as fairly valued, given its moderate growth and steady margins.

On February 2, Scotiabank downgraded the stock to Sector Perform from Outperform while maintaining the $85 price target. Despite the downgrade, the research firm insists the company is undoubtedly a legendary company  with compelling offerings in secure networking.

On January 23, Fortinet announced a major upgrade to FortiSIEM, enhancing its scalable SIEM platform with stronger threat detection, agentic AI-driven incident response, and expanded data sovereignty options. Version 7.5 is built to counter increasingly sophisticated AI-powered attacks while improving IT and OT security analytics, streamlining investigations, and expanding pipeline management capabilities.

Fortinet, Inc. (NASDAQ:FTNT) is a cybersecurity leader providing an integrated networking and security platform via FortiOS, with its FortiGate firewalls protecting more than 700,000 organizations worldwide.

While we acknowledge the potential of FTNT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.