Fortinet plummets as analysts express concerns after full-year guidance cut
hapabapa/iStock Editorial via Getty Images
Fortinet (NASDAQ:FTNT) shares plummeted more than 18% in pre-market trading on Friday after the cybersecurity company lowered its full-year guidance, with several Wall Street analysts pointing out the economy is clearly weighing on results.
BMO analyst Keith Bachman kept his market perform rating on Fortinet (FTNT), but lowered his price target to $72 from $88, noting that the company is seeing an impact in its core business, as well as the broader firewall.
Bachman added that the next several quarters "look challenging," especially for product revenues and there are read throughs for Palo Alto Networks (NASDAQ:PANW), citing concerns about the contracting contract duration.
Palo Alto Networks (PANW) shares fell more than 6% in pre-market trading on Friday.
J.P. Morgan analyst Brian Essex, who has an overweight rating on Fortinet (FTNT), said the stock is "stepping into the penalty box" due to weak product revenue, lower billings growth and macro-related issues.
"We expect FTNT will be in the penalty box and will remain under pressure following the disappointing results and lower near-term growth outlook," Essex, who lowered his price target to $74 from $88, wrote in a note.
For the full-year, Fortinet (FTNT) now expects sales to fall within a range of $5.35B to $5.45B, down from a prior view of $5.43B to $5.49B.
It also expects service revenue to be between $3.35B and $3.41B, while billings are forecast to be between $6.49B and $6.59B.
More on Fortinet 

Fortinet, Inc. Q2 2023 Earnings Call Transcript
Fortinet: Something To Watch For With Earnings Around The Corner
Fortinet: Navigating Second Half Of 2023 Through Cybersecurity Resilience
Fortinet: Long-Term Winner With Concerning Near-Term Outlook