Fortinet shares surged 6% after TD Cowen upgraded the stock to Buy from Hold and kept its $100 target. Analyst Shaul Eyal cited solid channel checks and projected 11.6% YoY billings growth for FY 2026. Investors reacted quickly, pushing the price to $77.62 in the early trading session as market sentiment turned bullish.

Eyal noted that artificial intelligence is augmenting security software, not displacing it, which supports Fortinet’s secure networking and SASE offerings. He also addressed concerns over rising memory costs that could pressure ASIC margins, but sees fourth‑quarter revenue upside driven by strong channel demand across its global customer base in 2026.

TD Cowen’s $100 target relies on a 9x revenue multiple for FY 2027 and a 27x free‑cash‑flow multiple, valuing Fortinet at roughly $7.5 billion enterprise value. Analysts will watch next quarter’s billings and margin data to gauge whether the upgrade holds, as AI demand continues to rise in the coming months for investors.