Fortinet shares slip; Mizuho cuts rating on 'elevated' challenges
MF3d/E+ via Getty Images

Fortinet (NASDAQ:FTNT) shares dipped slightly into the red Friday as Wall Street showed only a bit of concern after Mizuho Securities analyst Michael Romanelli cut his rating on the security technology company's shares.
Romanelli lowered his view on Fortinet (FTNT) to neutral from buy as he said recent checks with company customers "were more subdued than we expected". Romanelli added that "elevated" macroeconomic challenges could put more pressure on Fortinet to "execute consistently".
However, Romanelli said Fortinet (FTNT) "has done a tremendous job growing its business over the last several years," as evidenced by the its year-over-year revenue growing by 20%, 29% and 32% in each of the last three years.
Romanelli said Fortinet (FTNT) "has clearly strengthened its competitive positioning over this timeframe, and has taken significant share in the network security market."
While he lowered his rating on Fortinet's (FTNT) stock, Romanelli left his $60-a-share price target unchanged.
Wall Street analysts currently have a consensus buy rating on Fortinet's (FTNT) stock. That view is echoed by Seeking Alpha authors, who also give the company's shares a buy rating. Seeking Alpha's Quant System, which historically outperforms the stock market, agrees with Romanelli, and has Fortinet (FTNT) set with a rating of hold.