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Goldman Sachs on Fortinet: Estimated Potential Upside of 18%

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Goldman Sachs on Fortinet

As of November 2, 2016, Goldman Sachs has listed Fortinet (FTNT) among its top ten stocks with sizeable investments in R&D (research and developments) that could beat the market (QQQ) (IVV) (IWM).

According to Goldman Sachs (GS), Fortinet could provide a cash return of 49% on cash investments in R&D by 2018. The investment firm has set a stock price target of $36 for by 2018 and sees a potential 13% upside for the stock.

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Performance of Fortinet

Fortinet operates in the application software sector and provides cyber security solutions. The company offers physical and virtual appliance products that offer various networking functions and security, including intrusion prevention and firewalls. R&D should help Fortinet analyze market changes while providing applications with new features.

The stock is currently trading at $30.80. Its 52-week high is $37.48 while its 52-week low is $23.16, and it’s been trading at very high PE (price-to-earnings) multiples. On a YTD (year-to-date) basis, the stock has risen 3.3%. On a two-year basis, the stock has risen 12%.

The stock is now trading 9.3% below its 100-day and 3.2% below its 20-day moving average. On April 13, 2016, its 20-day moving average crossed its 100-day moving average in an upward direction. Technically, when short-term moving averages cross long-term moving averages in an upward direction, it suggests continued upward movement.

For related analysis, check out Market Realist’s series Why Jim Chanos Is Shorting These Stocks.

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