Buy Rating Affirmed for Check Point Software Technologies Amid Strong Q1 Results and Positive Subscription Growth

Check Point (CHKP – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Tal Liani from Bank of America Securities reiterated a Buy rating on the stock and has a $185.00 price target.

Tal Liani has given his Buy rating due to a combination of factors, including Check Point Software Technologies’ solid first-quarter results and positive subscription growth trends. With a year-over-year revenue growth outpacing expectations and a notable increase in new business, Liani sees an underlying recovery in growth. He highlights that the company’s subscription revenue, specifically, performed better than previously estimated, and this momentum is expected to continue, albeit slightly decelerated, into the next year.

Furthermore, Liani points to the potential for product and license revenue to rebound from previous declines, underscoring this as a critical aspect for future growth. Despite the risks associated with product revenue, Liani believes that Check Point is positioned for an upswing, bolstered by a product refresh cycle and management’s targets for double-digit growth. Moreover, improvements in gross margins and a favorable tax rate contributing to earnings per share (EPS) growth reinforce his positive outlook, justifying the Buy rating and a price objective that suggests significant upside from the current trading level.

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Check Point (CHKP) Company Description:

Check Point Software Technologies Ltd. engages in the development and market of software and hardware solutions for information technology security. The company products include threat prevention, next generation firewalls, mobile security, and security management. Its solutions cater to the following: point of sale systems, automated teller machines, private and public cloud, and telecommunications providers. The company was founded by Gil Shwed, Marius Nacht, and Shlomo Kramer in July 1993 and is headquartered in Tel Aviv, Israel.