Check Point Software: AI-Driven Growth Investments and Hardware Strength Underpin Buy Rating and $260 Target

In a report released today, Shaul Eyal from TD Cowen reiterated a Buy rating on Check Point, with a price target of $260.00.

Shaul Eyal has given his Buy rating due to a combination of factors, including expectations for a healthy start to 2026 with mid‑single‑digit billings growth and slightly faster revenue expansion, driven in part by robust demand for Check Point’s product lineup. He highlights especially strong prospects for hardware and related offerings, supported by AI‑driven data‑center investments and the benefit of a recent price increase, which together create room for upside versus consensus forecasts.

At the same time, Eyal acknowledges that integration spending for newly acquired AI startups will pressure operating margins, but views this as a deliberate shift toward growth as Check Point deploys its sizable cash balance to enhance its software and subscription portfolio. He points to a clear strategic roadmap built around core security pillars and expanding AI security capabilities, combined with ongoing go‑to‑market and channel investments, and argues that the current valuation—anchored by a 2027 earnings multiple he deems appealing—supports maintaining a Buy rating and a $260 price target.