Goldman Sachs analysts said in a note Tuesday that the impact on Fortinet (NASDAQ:FTNT) fundamentals from the reported U.S. cyber security incident last week is likely to be minimal.
The analysts explained that FTNT fell 3% last week following a Microsoft (NASDAQ:MSFT) blog post explaining a cyberattack on U.S. critical infrastructure. "According to the blog, the attack is intended to disrupt communications infrastructure between the U.S./Asia targeting organizations in Guam and the U.S.," they wrote.
"The Microsoft blog specifically called out Fortinet's 'internet-facing FortiGuard devices,' which were targeted by Volt Typhoon to gain initial-access to the network," they added.
However, they said that after conversations with two Fortinet distributors, they expect to see minimal impact on Fortinet's pipeline or win rates.
"The distributors we spoke to noted that only a few customers have reached out following the blog. Most cybersecurity professionals view the situation as independent of the strength of Fortinet's technology platform or customer service," the analysts stated.