6 downgrades for Fortinet, Fox slashed at JPMorgan: 4 big analyst cuts

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at FOX, Fortinet , Southern, and JPMorgan.

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Although the revenue reached $3.21 billion, surpassing the anticipated consensus of $3.18B, the quarter’s profits declined by nearly 33%. This drop in earnings can be attributed to a decrease in political advertising and increased costs associated with broadcasting the women's soccer World Cup, along with investments made in enhancing its digital platform.

"We like Fox’s concentrated news, sports, and broadcast strategy, which has buoyed shares vis-à-vis media peers during the industry-wide selloff of the last two years, but long-term strategic questions remain. We particularly question the lack of a wider digital strategy, as linear ecosystem subscriber losses remain elevated in the coming years and the pace of affiliate increases will fade, leaving Fox subject to a tough linear affiliate trend more similar to peers," commented JPMorgan.

Fortinet hit with a number of downgrades following disappointing guidance /h2

Today, Fortinet (NASDAQ:FTNT) faced a series of downgrades following its third-quarter earnings report and lowered guidance, which was driven by weak corporate spending amidst economic uncertainties. This news triggered a sharp decline in the company’s shares, which fell over 23% in pre-market today.

JPMorgan shifted Fortinet's rating from Overweight to Neutral, slashing the price target from $67.00 to $52.00. The analysts expressed concerns about increased risks during this economic cycle, citing Fortinet's billing and revenue falling short of expectations and a consecutive reduction in full-year billing and revenue guidance. They attributed the quarter's weakness to both sales execution issues and softness in sectors like Service Providers and Retail.

Evercore ISI adjusted Fortinet's rating from Outperform to In Line, revising the price target from $78.00 to $51.00. Despite maintaining confidence in Fortinet's management and long-term execution capabilities, the analysts noted that the reorganization focusing on Secure Networking, Security Operations, and Universal SASE core growth areas might introduce short-term uncertainties, especially given the current challenges in the firewall appliance market.

Oppenheimer downgraded Fortinet from Outperform to Perform. Stifel altered its rating from Buy to Hold, reducing the price target from $69.00 to $52.00. William Blair changed Fortinet's rating from Outperform to Market Perform. Lastly, Cantor Fitzgerald moved Fortinet from Overweight to Neutral, cutting down the price target from $75.00 to $50.00.

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