Fortinet stock (NASDAQ:FTNT) is declining more than 1% on Friday as the company received a downgrade from an analyst at a major firm to end the week on a sour note.
Goldman Sachs analyst Gabriela Borges changed her rating on cybersecurity software company, lowering it to a sell from a buy. Additionally, the analyst said that she has slashed her price target on the company to a Wall Street low of $59, a considerable drop from her previous price target of $95.
The Goldman Sachs worker noted that Fortinet’s stock price is expected to decline on “heightened cyclical risk,” as well as a valuation that is higher than what the reality of the company’s situation suggests. Borges added that she foresees a deceleration in the company’s product revenue over the next two years.
On a more positive note, the company has been named as a founding partner of the World Economic Forum’s Center for Cybersecurity, which is in support of international efforts to create a collaboration between industry, academia, government and civil society with the goal of battling cyber crime.
Fortinet added that founder, chairman and CEO Ken Xie will be a member of the center’s advisory board, while also serving as a discussion leader for the upcoming cyber workforce session that is set to take place on Jan. 22 as part of the WEF Annual Meeting in Davos, Switzerland.
FTNT stock is down about 1.1% on Friday.