BTIG analyst Gray Powell has maintained their neutral stance on CHKP stock, giving a Hold rating today.
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Gray Powell has given his Hold rating due to a combination of factors including Check Point’s recent financial performance and future outlook. The company reported lower-than-expected billings growth in the second quarter, which fell short of both internal and market expectations. This was partly due to some large deals being delayed into the third quarter, impacting the quarterly growth figures. Despite this setback, management expressed optimism as many of these deals have already closed in July, and the demand appears robust moving forward.
Moreover, while the company maintained its revenue guidance for 2025, indicating stability, the overall growth metrics suggest a mid-single-digit growth trajectory. This growth rate, coupled with a valuation that reflects mid- to high single-digit growth and declining cash flow margins, presents a balanced risk-reward scenario. As a result, Powell’s Hold rating reflects a cautious stance, acknowledging both the potential for recovery and the challenges in achieving significant growth acceleration.
In another report released today, Barclays also maintained a Hold rating on the stock with a $215.00 price target.
CHKP’s price has also changed moderately for the past six months – from $218.990 to $186.670, which is a -14.76% drop .