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Following Piper Sandler's upgrading of Fortinet (NASDAQ:FTNT) to Overweight from Neutral, citing positive trends in cybersecurity and infrastructure software for 2025, shares of Fortinet (NASDAQ:FTNT) surged around 3% in premarket trade Monday.
Under the leadership of Rob Owens, the focus was squarely on major 2024 events like two cybersecurity firms exceeding the $100 billion market valuation threshold and a record ransomware payment. "As we turn the page to 2025, we still see an active threat landscape buoyed by the threat of generative AI, increased geopolitical tensions, and broader concerns over the protection of critical infrastructure," the analysts added.
One of five strong picks for 2025 listed by Piper Sandler is Fortinet, which got a price target rise to $120 from $100. The others include Atlassian (NASDAQ:TEAM), with a revised target of $310 from $265; GitLab (NASDAQ:GTLB), at $85; SentinelOne (NYSE:S), at $32; and Zscaler (NASDAQ:ZS), at $235. The company rates everybody as overweight.
With strength concentrated in cybersecurity, artificial intelligence, and infrastructure software, the research highlighted a more robust IT expenditure aspirations in a stable economy. Not completely included in projections, analysts also pointed out that a new firewall upgrade cycle is projected to start up in 2025, therefore benefiting businesses like Fortinet.
This article first appeared on GuruFocus.