Check Point’s Stability and Growth Potential: A Buy Rating Supported by Defensive Characteristics and Strategic Initiatives

TD Cowen analyst Shaul Eyal has maintained their bullish stance on CHKP stock, giving a Buy rating on April 1.

Shaul Eyal has given his Buy rating due to a combination of factors that highlight Check Point’s stability and growth potential. The company’s defensive characteristics, such as low growth and predictable annual free cash flow of $1 billion, provide a safety net for tech investors amidst market volatility. This stability is further supported by Check Point’s strong performance in the current market, where it has managed to remain largely unaffected by broader market downturns.
Additionally, the company’s predictable revenue model, with over 80% recurring revenues, and its solid financial performance, including expected revenue and billings that meet or exceed estimates, contribute to a positive outlook. The introduction of new products like Quantum Force appliances and the continued growth of existing solutions such as Harmony email security and SASE, along with strategic partnerships, further bolster Check Point’s growth prospects. These factors, combined with management’s focus on customer success and a revitalized go-to-market strategy, support Eyal’s Buy rating for Check Point.

Eyal covers the Technology sector, focusing on stocks such as Check Point, Cloudflare, and Fortinet. According to TipRanks, Eyal has an average return of 22.5% and a 63.73% success rate on recommended stocks.

In another report released on April 1, Wells Fargo also reiterated a Buy rating on the stock with a $280.00 price target.