Robert W. Baird Maintains Hold on Fortinet Amid Supply Chain Concerns

On 11 May 2026, Shrenik Kothari of Robert W. Baird maintained a Hold rating on Fortinet (NASDAQ: FTNT), assigning a price target of $115.00 to the shares. The analyst’s assessment balances the company’s robust underlying business model against emerging operational and geopolitical headwinds that could impact near-term performance.

Kothari highlighted that Fortinet’s fundamentals remain solid, driven by healthy growth in remaining performance obligations (RPO). A significant portion of the company’s future revenue is already contracted, which supports the durability of its subscription and support model. This recurring revenue structure provides a degree of visibility and stability for investors tracking the cybersecurity provider’s financial trajectory.

Despite these strengths, the analyst identified specific risks related to the company’s supply chain and balance sheet. Increasing inventory purchase commitments, coupled with constraints on critical components such as memory chips, present potential execution challenges. These factors could strain operational efficiency and require careful management to avoid adverse impacts on financial results.

Geopolitical exposure remains a notable concern due to the high concentration of Fortinet’s hardware manufacturing in Taiwan. Although the company has undertaken diversification efforts, the reliance on this region exposes Fortinet to potential disruptions arising from geopolitical tensions or operational issues in the area. This concentration risk adds a layer of complexity to the company’s long-term supply chain strategy.

Kothari concluded that while Fortinet presents an investment opportunity, other stocks in the artificial intelligence sector may offer greater upside potential with less downside risk. The recommendation suggests that capital might be better allocated to peers with more favourable risk-reward profiles in the current market environment.