Fortinet (NASDAQ:FTNT) shares climbed about 6% on Friday after TD Cowen upgraded the cybersecurity firm to Buy from Hold, reiterating a $100 price target. Analyst Shaul Eyal pointed to encouraging channel checks that suggest demand conditions remain steady as fiscal 2026 gets underway.
Eyal left his existing financial model unchanged but highlighted potential upside to fourth-quarter 2025 billings and revenue, currently forecast to grow 11.6% and 13.3% year over year, respectively. He added that TD Cowen’s full-year 2026 billings growth estimate of 11.6% could move higher if current spending trends persist.
Addressing broader industry concerns, Eyal said artificial intelligence is “not eating security software but rather augmenting it,” reinforcing the case for sustained demand for Fortinet’s product portfolio.
The analyst also tackled investor worries around softer fourth-quarter channel signals and the impact of rising memory prices on Fortinet’s ASIC sales and margins. Despite those concerns, Eyal’s own checks suggest potential upside to both revenue and billings in the fourth quarter, driven by strength across Fortinet’s secure networking offerings, unified SASE platform and SecOps capabilities.
TD Cowen described the current share price as “a favorable entry point to a consistent rule of 45+ performer.” The firm’s $100 target is derived from a valuation of roughly 9 times enterprise value to fiscal 2027 revenue, or about 27 times enterprise value to fiscal 2027 free cash flow.
Fortinet shares ended the prior session at $77.62.