Buy Fortinet stock following the recent sell-off: Guggenheim recommends

Investors should consider capitalising on the recent sell-off in Fortinet Inc (NASDAQ: FTNT), says Raymond McDonough – a Guggenheim analyst.

Fortinet stock could climb back to $70

McDonough upgraded the cybersecurity stock this morning to “buy” and said it could recover all the way back to $70.

Shares of the Nasdaq-listed firm tanked last week after it reported weaker-than-expected revenue for its second financial quarter. Still, the Guggenheim analyst said in a research note today:

Fortinet stock also lost nearly 25% this past Friday because the management lowered its revenue guidance for the current quarter as well.

Growth will likely reaccelerate next year

Fortinet Inc now forecasts its revenue to fall between $1.315 billion and $1.375 billion in its fiscal third quarter, as per the press release. In comparison, analysts had called for a higher $1.382 billion.

Still, Raymond McDonogh told clients on Monday that much of the risks are already priced in after the sharp sell-off last week.

The Guggenheim analyst likes Fortinet stock because he’s convinced that growth will reaccelerate in 2024. Note that California-based company did come in ahead of Street expectations on the earnings front in its latest reported quarter.