Shares of Fortinet Inc. FTNT, -0.46% are down 0.8% in Wednesday morning trading after Morgan Stanley analysts downgraded the stock to equal-weight from overweight. "While Fortinet is not expensive at 14x CY19 FCF, we believe a discount is warranted as its hardware-oriented business model is less well positioned that its competitive sets, including Cisco CSCO, +0.55% and Palo Alto Networks PANW, +0.29% " wrote the analysts, led by Melissa Franchi. The team at Morgan Stanley also raised their price target on overweight-rated Palo Alto Networks to $224 from $205. "Its growing portfolio of cloud-related security solutions and software-related differentiation positions it for durable double digit growth," the analysts wrote of Palo Alto Networks, whose shares are little changed in Wednesday's session. Fortinet's stock is down 49% over the past 12 months, while Palo Alto Networks shares have gained 65%. The S&P 500 SPX, -0.08% is up 12% in that time.