What happened

IT network security stock Fortinet (FTNT 1.00%) looked relatively secure on Monday. The company's shares fell on the day, but by less than 0.5% -- a less steep slide than the nearly 0.8% decline of the broad S&P 500 index. A positive new research note from a prominent investment bank -- complete with an upgrade and price target lift -- was a key reason why.  

So what

Morgan Stanley's Hamza Fodderwala feels that Fortinet is underappreciated by the market, and consequently has upgraded his recommendation on the stock from equal weight to overweight (from neutral to buy, in other words). He also gave its price target a modest bump: He now believes shares of the cybersecurity company will hit $69 within the next year, up from his previous target of $66.

In Fodderwala's view, demand for IT security solutions "remains durable" even in this rather shaky macroeconomic environment, in which many individuals and companies are concerned about inflation and growth.

The analyst believes that Fortinet will continue to grow organically and increase market share as the total addressable market for its services rises. That view was bolstered by his recent checks of the company, which reveal an increasing backlog and revisions for 2023.

Now what

Fodderwala thinks Fortinet is capable of sustaining its momentum for several years. The company is operating from a low base, as by his estimation it has only 5% revenue penetration. This should, he thinks, allow it to deliver compound annual revenue growth of at least 20% over the next five years.