Analyst Note
| Mark Cash |We are upgrading our moat ratings for Check Point Software Technologies, Fortinet, and Palo Alto Networks to wide from narrow. For moat trends, we maintained Palo Alto as positive, adjusted Fortinet to positive from stable, and kept Check Point as stable. The wide moat upgrades also drove fair value estimate increases: Check Point's fair value estimate is now $137 from $132, Fortinet's fair value estimate is upped to $285 from $250, and Palo Alto's fair value estimate has increased to $585 from $550. We view shares in steady but lower-growing Check Point as attractive for patient investors. Palo Alto's shares are a bit undervalued, in our view, and we believe the firm will continue to be a leader and share gainer. We think investors should wait for a pullback in Fortinet's shares.