Goldman Sachs analyst Brian Essex upgraded Fortinet (FTNT) to Buy from Neutral with a price target of $150, up from $143. The stock closed Monday down $2.72 to $128.82.

Based on recent conversations with industry participants as well as industry trends this quarter, the analyst believes Fortinet's large enterprise headwinds "may be abating sooner than anticipated."

Further, the company's SD-WAN traction still seems to be accelerating and NP7 product cycles remain in early stages, Essex tells investors in a research note.

Given its valuation discount to peers, improving execution, product cycle strength, and firewall "tailwind," Fortinet is well-positioned to outperform from current levels, says the analyst.