Fortinet: On The Road To Recovery (Rating Upgrade)

Group 1 - Fortinet's share price has rebounded to near all-time highs following its Q2 earnings report, indicating a positive market reaction despite the results not being particularly strong [1] - The easing of hardware demand headwinds suggests that Fortinet is on track to return to steady growth and improving margins, which could enhance its long-term performance [1] Group 2 - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misunderstandings of long-term business prospects, aiming for excess risk-adjusted returns [2] - The research process at Narweena emphasizes company and industry fundamentals to uncover unique insights, particularly in smaller cap stocks and markets with less obvious competitive advantages [2] - The investment strategy is influenced by demographic trends, such as an aging population and low growth, which may create new opportunities while some industries face stagnation or decline [2] - The current economic landscape is characterized by a shift towards asset-light businesses and a declining need for infrastructure investments, leading to increased asset prices and compressed risk premia [2]