Why Fortinet Stock Zoomed Almost 9% Higher This Week
A favorable environment for peer stocks and an analyst's price target raise combined to lift Fortinet (NASDAQ: FTNT) stock higher this week. Over the five trading days, the cybersecurity company's equity rose by nearly 9%.
Worries about the rapid development of artificial intelligence (AI) capabilities -- in some cases voiced this week by leading developers themselves -- led investors to load up on cybersecurity titles.
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Should fears of AI spiraling out of control be realized, it's almost certain that the systems operated by such companies will be an important line of defense protecting valuable assets.
On Thursday, Bernstein SocGen Group analyst Peter Weed made a significant change to his Fortinet price target. He lifted it to $145 per share from $102, which helped improve sentiment on the stock, even though the analyst maintained his equivalent of a hold recommendation.
I've been bullish on cybersecurity stocks for quite some time, and I think they've recently been getting their due thanks to that growing awareness of how necessary their services are -- and will be. Fortinet is a seasoned, reliable, and trusted company in this space, and has a real advantage over peers with its proprietary custom silicon and its single operating system, FortiOS.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fortinet. The Motley Fool has a disclosure policy .
