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Stock Strategist Industry Reports

These 3 Network Security Stocks Get a Moat Upgrade

We think their excess returns on invested capital will endure, thanks in part to switching costs.

Mentioned: , ,

We have upgraded our economic moat ratings for Check Point Software Technologies (CHKP), Fortinet (FTNT), and Palo Alto Networks (PANW) to wide from narrow. For our moat trend ratings, we maintained Palo Alto at positive, adjusted Fortinet to positive from stable, and kept Check Point at stable. The moat rating upgrades drove fair value estimate increases as well: to $137 per share from $132 for Check Point, to $285 per share from $250 for Fortinet, and to $585 per share from $550 for Palo Alto.

Mark Cash does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.