Rosenblatt Research upgraded Fortinet to Buy, raising its price target to $100. The upgrade comes ahead of the company's fourth-quarter earnings, expected in early February. The firm cited positive channel checks with value-added resellers, suggesting improving momentum. Partners are meeting or exceeding targets, indicating a healthy demand environment for the cybersecurity firm.

This positive outlook stems from a broad hardware refresh cycle, particularly displacing older Cisco firewall systems. This cycle creates an entry point for secure access service edge (SASE) products, fueling incremental growth. Rosenblatt also pointed to aggressive sales execution and favorable tax incentives.

At current levels, Rosenblatt views Fortinet shares as attractively valued. The firm anticipates a beat-and-raise quarter, supported by improving demand and valuation. For investors, this suggests potential for stock price appreciation. Fortinet's high gross margins and disciplined operating execution further support the positive outlook.

Investors should watch for Fortinet's earnings report in early February for confirmation of these trends. The company's performance will be a key indicator of the ongoing demand for cybersecurity solutions. Any positive surprises in the report could further boost investor confidence and the stock price. The refresh cycle is key.