Fortinet shares rise 2% premarket after upgrade, while Rapid7 falls 7% following downgrade and bearish outlook.
Morgan Stanley upgraded Fortinet (FTNT) to Equal-weight from Underweight, citing improved hardware demand and near-term catalysts. The firm also raised its price target for the cybersecurity stock ahead of earnings season, driving a 2% premarket gain.
Rapid7 (RPD) was downgraded to Underweight due to challenges in vulnerability management, including AI-native competition, declining annual recurring revenue, and margin deterioration. The stock fell 7% premarket after the downgrade.
The moves reflect shifting sentiment in the cybersecurity sector, with Palo Alto Networks highlighted as a preferred pick for AI security and platform consolidation benefits.