Check Point Software Started With 'Outperform' At FBN Securities
Thursday, January 12, 2022 11:33 AM

FBN Securities started coverage of Check Point Software Technologies Ltd.  (NASDAQ:CHKP) with an "Outperform" rating and price target of $65.00.

Shebly Seyrafi, an analyst at FBN, said the company "is a market share leader (est. 15-20% market share) in enterprise network firewalls (a segment which accounts for roughly 90% of revenue; endpoint is ~ 10% of revenue), and with its R75 software suite in February 2011 it entered the important next-generation firewall (NGFW) market."

Check Point fundamentally transformed its business model and created a more recurring revenue stream with more cross-selling opportunities, with its 2007 entry into the appliance market and its 2009 entry into the software blade market, Seyrafi wrote in a note.

Seyrafi models Q4 revenue/EPS of $356M/$0.82, in line with consensus. The company reports quarterly results on Jan. 17.

Seyrafi said other positives include a likely strong appliance refresh cycle in 2012 and in 2013; strong momentum against CSCO and JNPR; and top placement in Gartner’s December 2011 Magic Quadrant report on Enterprise Network Firewalls.

CHKP is currently trading at $52.19, down 0.17 percent. The stock has been trading in the 52-week range between $44.32 and $61.60.