Fortinet likely to post 'solid' Q2, highlight new uses amid competition: Baird
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Cybersecurity company Fortinet (NASDAQ:FTNT) is slated to report second-quarter results on August 3 and investment firm Baird is expecting it to report "solid" results, along with a focus on new use cases amid rising competition. 
Analyst Shrenik Kothari, who has an outperform rating on Fortinet (FTNT), noted that recent channel checks, fieldwork and a meeting with company management has reinforced his "positive outlook."
"[Fortinet] is managing macro-risks proactively, aiming for double-digit bookings growth, while being macro-prudent about full-year guidance," Kothari wrote in an investor note.
Kothari also said the company's pricing strategy is "attractive" amid rising competition and it is focusing on new areas, such as secure operational technology, secure access service edge and artificial intelligence.
Earlier this month, Microsoft (MSFT) announced the expansion of its Entra identity and access management offerings into the secure service edge market.
Kothari, who also boosted his per-share price target on Fortinet (FTNT) to $93 from $73, said he is expecting $1.3B in revenue and 34 cents per share in earnings, while operating margin guidance is being seen as "conservative."
The analyst is also expecting billings for the second-quarter to rise between 20% and 23% year-over-year. 
"[Fortinet] aims for double-digit bookings growth for the year, showing the robustness of the "organic growth" and the pipeline momentum," Kothari added. "That said, the company has also been prudent about full-year guidance (high cancellation rate assumption on its backlog for 2H), due to potential macroeconomic conditions and supply chain disruptions."
Fortinet (FTNT) shares fell 1.6% in mid-day trading on Monday.
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