Analyst Tal Liani from Bank of America Securities reiterated a Buy rating on Check Point (CHKP – Research Report) and keeping the price target at $260.00.
Tal Liani has given his Buy rating due to a combination of factors that highlight Check Point’s potential for growth. The company demonstrated a notable 14% increase in product revenue, surpassing market expectations, driven by strong demand for firewall products. Despite macroeconomic uncertainties, the management has laid a solid foundation for sustainable growth, evidenced by a 7% increase in billings and an 11% rise in remaining performance obligations year-over-year.
Furthermore, Check Point’s stock has shown resilience, appreciating by 18% since the appointment of the new CEO, in contrast to a decline in the NASDAQ index. The company’s strategic changes, including new leadership roles and efforts to engage with key customers, are expected to contribute to growth acceleration over time. Although there are risks, such as potential delays in firewall refresh cycles and deceleration in subscription and maintenance revenues, the company’s approach to maintaining margin levels and its strategic initiatives support the Buy rating.
Liani covers the Technology sector, focusing on stocks such as Check Point, CrowdStrike Holdings, and Cisco Systems. According to TipRanks, Liani has an average return of 9.1% and a 53.72% success rate on recommended stocks.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $285.00 price target.