SecureOT Expansion Could Be A Big Test For Fortinet Stock

• Rockwell Automation previously announced new SecureOT industrial cybersecurity offerings that now include Firewall Managed Services and Infrastructure Managed Services built around Fortinet FortiGate firewalls and other Fortinet infrastructure.
• This deeper role for Fortinet inside Rockwell Automation's OT services stack increases visibility into how Fortinet products may integrate into long running industrial security projects.
• We will now explore how Fortinet's deeper role in Rockwell Automation's OT services could influence the broader investment narrative around services.

Scan how Fortinet fits into the broader security theme by weighing it against a curated set of 31 resilient stocks with low risk scores that aim to keep operational risk in check.

Fortinet Investment Narrative Recap

For a shareholder in Fortinet, the core belief is that its firewall and SASE footprint keeps feeding higher margin security services over time. The Rockwell Automation SecureOT news supports that idea at the margin because it puts Fortinet deeper into operational technology projects that often run for years and pull through services.

The key near term swing factor is still how the current hardware cycle converts into recurring contracts, especially in SASE, firewall, and OT security. The biggest risk remains hardware heavy billings and a rich P/E that leaves little room if firewall refresh demand cools. This Rockwell update does not fundamentally change that equation.

The Rockwell Automation expansion of SecureOT managed services around Fortinet FortiGate firewalls looks most relevant here. It reinforces that Fortinet appliances and software are being built into third party managed offerings, which can support the push toward more recurring service revenue tied to operational resilience in plants and critical infrastructure.

For catalysts, investors may focus on whether OT security traction like this converts into larger, multi year contracts that mix hardware with FortiGuard and other services. The risk side is that these deployments still lean on the existing firewall base rather than opening up new greenfield accounts, which could limit how far OT and SASE services can scale.

Fortinet's narrative projects US$10.9b revenue and US$3.2b earnings by 2029. This implies 13.3% yearly revenue growth and an earnings increase of about US$1.1b from US$2.1b today.

Uncover how Fortinet's fair value indicates a 13% potential downside to its current price, suggesting that the current premium may not be sustainable.

Exploring Other Perspectives

Some of the most optimistic analysts see Fortinet very differently from the consensus. They were already pencilling in about US$11.9b of revenue and US$4.1b of earnings by 2029, with faster 16.6% yearly growth, before this Rockwell Automation SecureOT news. You can treat this OT partnership update as a chance to reassess which storyline feels closer to your own expectations.

Explore 5 other Fortinet fair value estimates, including one that suggests it could be worth as much as $164.32.

The Verdict Is Yours

Don't just follow the ticker; dig into the data and build a conviction that's truly your own.

• A great starting point for your Fortinet research is our analysis highlighting 2 key rewards that could impact your investment decision.
• See our latest analysis for Fortinet. The report includes a comprehensive fundamental analysis summarized in a single visual, the Snowflake, making it easy to evaluate Fortinet's overall financial health at a glance.

Looking for more Fortinet style investment ideas?

If the Fortinet story has you thinking about portfolio upgrades, it can help to compare it with other stocks that fit clear risk and quality filters using the Simply Wall St Screener.

• For investors who want to prioritise balance sheet strength and durability, start with a list of solid balance sheet and fundamentals (25 results) that can handle tougher conditions.
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• For income seekers who care about consistency as much as yield, review a set of 8 dividend fortresses that aim to keep payouts front and centre.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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