Jan. 28, 2014, 5:35 PM| Comment!
Jan. 28, 2014, 9:44 AM
- Orange (ORAN -1.5%) has been cut to Reduce by Kepler Capital.
- Fortinet (FTNT +2%) has been upgraded to Outperform by JMP ahead of Wednesday's Q4 report. Wedbush and Morgan Stanley upgraded shares two weeks ago.
- Sierra Wireless (SWIR -2.7%) has been cut to Hold by Salman Partners. Q4 results are due on Feb. 5.
- Control4 (CTRL +2.9%) has been started at Outperform by Imperial Capital. Shares flew higher two weeks ago following the Google/Nest deal, but have since given back a chunk of their gains.
Jan. 23, 2014, 6:02 PM
Jan. 15, 2014, 9:58 AM
- Intel (INTC +0.9%) has been upgraded to Outperform by BMO a day after JPMorgan upgraded shares to Overweight. Both moves come ahead of tomorrow's Q4 report.
- Cirrus Logic (CRUS -3.3%) has been cut to Underperform by Pac Crest ahead of its Jan. 28 FQ3 report.
- Fortinet (FTNT +2.3%) has been upgraded to Outperform by Wedbush two days after Morgan Stanley upped shares to Overweight. Q4 results are due on Jan. 29.
- Xilinx (XLNX +2%) has been upgraded to Overweight by Barclays ahead of its Jan. 21 FQ3 report. Rivals Altera (ALTR +1.3%) and QuickLogic (QUIK +4.3%) are also trading higher.
- Telefonica Brasil (VIV +0.9%) has been upgraded to Overweight by HSBC.
- Synnex (SNX +3.3%) has been upgraded to Buy by Citi six days after posting an FQ4 beat.
- Teradyne (TER +2%) has been upgraded to Outperform by Pac Crest ahead of its Jan. 22 Q4 report. Goldman declared shares a Conviction Buy yesterday.
Jan. 13, 2014, 9:56 AM
- H-P (HPQ +3.7%) and Teradata (TDC +1.8%) have been started at Overweight by Atlantic Securities.
- BlackBerry (BBRY -6.2%) has been cut to Underperform by Oppenheimer following a major rally over the last four weeks. RBC upgraded shares last Friday.
- F5 (FFIV +3.7%) has been upgraded to Outperform by William Blair.
- Qihoo (QIHU +4.3%) has been upgraded to Buy by Stifel, and started at Buy by UBS. Shares fell last Thursday following a report questioning the size of the company's search share gains, and rose the day before thanks to an Alibaba investment rumor.
- Cree (CREE -6.6%) has been cut to Hold by Stifel.
- Autodesk (ADSK +1.8%) has been upgraded to Overweight by Morgan Stanley.
- Skyworks (SWKS +4.7%) has been upgraded to Buy by B. Riley.
- Red Hat (RHT +4.4%) has been upgraded to Overweight by Morgan Stanley.
- Fortinet (FTNT +2.1%) has been upgraded to Overweight by Morgan Stanley.
- HomeAway (AWAY +2%) has been upgraded to Overweight by Barclays.
- Garmin (GRMN +1.1%) has been upgraded to Outperform by Oppenheimer.
- Nimble Storage (NMBL +2.2%) has been upgraded to Outperform by Pac Crest. The firm started Nimble and Sector Perform just six days ago.
- Peregrine Semi (PSMI -9.1%) has been cut to Hold by Deutsche.
- Sanmina (SANM -7%) has been cut to Underperform by Raymond James.
- Symantec (SYMC -2.3%) has been cut to Underweight by Morgan Stanley.
- NCR (NCR +2.2%) has been started at Overweight by JPMorgan, and added to the firm's Focus List.
- Vipshop (VIPS +1.8%) has been started at Buy by UBS.
- Parametric Sound (PAMT +4.5%) has been started at Strong Buy by Needham.
Jan. 10, 2014, 5:39 PM
Dec. 23, 2013, 9:52 AM
- Fortinet (FTNT +2.7%) has hired Drew Del Matto, most recently Symantec's (SYMC +0.2%) chief accounting officer and interim CFO, its new permanent CFO. (PR)
- The hiring comes a month after CFO/COO Ahmad Rubaie resigned for personal reasons, leading shares to tumble. Fortinet says it's still looking for "a senior operations executive." Baird has upgraded shares to Outperform.
- Symantec has named tax VP Don Rath its new interim CFO, and also its interim accounting chief. James Beer, Symantec's last full-time CFO, left three months ago to become McKesson's CFO.
Dec. 18, 2013, 7:13 PM
- Compared with servers and storage systems, demand for security hardware remains quite healthy. IDC estimates security appliance sales rose 6.5% Y/Y in Q3 to $2.2B, even as units only rose 0.3% (indicates higher ASPs). Sales had risen 6.1% in Q2 in spite of a 1.5% shipment drop.
- IDC thinks Cisco (CSCO), which just acquired leading intrusion prevention system (IPS) vendor SourceFire, had a 15.9% industry share, down fractionally Y/Y. #2 Check Point (CHKP) is given a 12.4% share (-30 bps), and #3 Fortinet (FTNT) a 6.4% share (+50 bps).
- #4 Juniper (JNPR), whose security unit has been a weak spot and is now under new management, saw its share fall 170 bps to 6.2%. Meanwhile, fast-growing next-gen firewall vendor Palo Alto Networks (PANW) saw its share rise 140 bps to 5.3%.
- In spite of healthy industry growth, the firewall market (21% of industry revenue), which Cisco, Juniper, and Check Point are well-exposed to, saw a 15% Y/Y sales drop. On the other hand, the unified threat management (UTM) market, which Fortinet is a leader in, grew 29%, and the IPS market grew 8%.
Dec. 9, 2013, 10:06 AM
- Fortinet (FTNT +1.7%) is launching a $200M buyback program. At current levels, the program is good for repurchasing 6.8% of outstanding shares. (PR)
- The buyback could partly be an attempt to reassure investors following the departure of CFO/COO Ahmad Rubaie only eight months after his hiring.
- Previous: BofA/Merrill upgrades Fortinet, says Rubaie's departure not a concern
Dec. 3, 2013, 10:26 AM
- BofA/Merrill has upgraded Fortinet (FTNT +1.5%) to Buy, and raised its PT to $24. Following a talk with management, the firm buys into Fortinet's assertion the pending departure of CFO/COO Ahmad Rubaie is due to personal reasons rather than any financial issues.
- It also thinks Fortinet will take much less time to name a new CFO than the seven months the company took to hire Rubaie following the departure of Ken Goldman.
- Stifel is also defending Fortinet, arguing the company UTM hardware leader's M&A value and $5/share in net cash/investments translate into a favorable risk/reward.
Nov. 29, 2013, 11:31 AM
Nov. 29, 2013, 6:49 AM
- FBR reiterates its Outperform rating and $26 price target on Fortinet (FTNT) despite the surprising departure of CFO/COO Ahmed Rubaie, which will send 'shockwaves' to investors.
- "We believe this announcement will likely send shockwaves to investors as Mr. Rubaie was thought to be a key ingredient in the company's recipe for success over the next few years, as his strong reputation/turnaround specialist from being Ariba's CFO, coupled by his immediate impact already felt at the company gave investors incremental confidence in the Fortinet story heading into 2014."
- "While there are a plethora of reasons that could have led to Mr. Rubaie's abrupt departure, we believe initial investor reaction today will likely be negative as Fortinet will now go back to square one in its CFO search as Nancy Bush will yet again take over the interim role until a permanent replacement is found."
- Still, firm says that fundamentally Fortinet is in a much better place today than it was back in April. "In a nutshell, despite the head scratching CFO departure that Fortinet announced in an "interestingly timed" pre-Thanksgiving press release, we remain positive on the overall story heading into 2014 as we find the risk/reward compelling on the heels of strong secular growth, a healthy product cycle, and attractive valuation." Firm also views Fortinet as a top M&A candidate in the security landscape given expectations large technology players will look to enter the cyber security sector over the next 12 to 18 months given its heightened importance in the technology landscape (e.g., Cisco's recent acquisition of Sourcefire).
- FTNT was down more than 4% following the late Wednesday announcement.
Nov. 27, 2013, 5:39 PM
Nov. 27, 2013, 4:46 PM
- Fortinet (FTNT) CFO/COO Ahmed Rubaie is resigning for personal reasons, and will be replaced by corporate controller Nancy Bush on an interim basis. Rubaie will be employed with Fortinet until Dec. 5, and "remain available on a reasonable basis" until March 5. (PR)
- Rubaie, who was the CFO of SAP-acquired Ariba before joining Fortinet, was only hired in April. He joined the company seven months after the respected Ken Goldman, who had been Fortinet's CFO for five years, left to become Yahoo's CFO.
Oct. 24, 2013, 9:12 AM
Oct. 23, 2013, 6:00 PM
- In slides (.pdf) published following its Q3 report, Fortinet (FTNT) guides for Q4 revenue of $162M-$167M (+9% Y/Y at the mid-point) and EPS of $0.13-$0.14, below a consensus of $167.3M and $0.15.
- Billings are expected to total $186M-$196M (+10% Y/Y at the mid-point) for the seasonally strong quarter. Fortinet's full-year free cash flow guidance range has been widened to $125M-$135M from $130M-$135M.
- With expectations relatively low - Fortinet had underperformed the Nasdaq by over 30% YTD going into the report - investors are focusing more on the Q3 beat, which was accompanied by a 14% Y/Y increase in billings to $165.2M (above revenue of $154.7M). Also, Fortinet's deferred revenue balance rose 3% Q/Q and 18% Y/Y to $400.2M.
- Q3 product revenue (45% of total, drives future services revenue) +11% Y/Y vs. +8% in Q2. Services revenue +20% vs. +22% in Q2. Americas sales +14%, EMEA +13%, Asia-Pac +13%.
- Q3 results, PR
FTNT vs. ETF Alternatives
Fortinet, Inc., is provider of network security solutions that are designed to address the fundamental problems of an increasingly bandwidth-intensive network environment and a more sophisticated information technology threat landscape.
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