Check Point Receives an Outperform from FBR Capital

By George MacDonald

FBR Capital analyst Daniel Ives maintained an Outperform rating on Check Point (NASDAQ: CHKP) on January 28 and set a price target of $90. The company’s shares closed last Friday at $78.81.

Ives said, “This morning, Check Point delivered respectable 4Q15 (Dec) results that hit the Street’s estimates on the top line while exceeding consensus on the bottom line and beating the all-important deferred number. With fears in the security space running rampant after the issues that Barracuda and FireEye among others have run into with an expected tick-down in “panic security spending” for 2016, we would characterize Check Point’s good December results/initial 2016 guidance as better than feared by many on the Street. While Check Point is continuing to see a more competitive landscape take hold on the security front, we believe it is well positioned to benefit from strong demand in the channel for its blade architecture, as well as more share gains from competitors with its appliance-driven product cycle gaining good traction in the field as evidenced again this quarter. Coupled with the company’s solid capital allocation plans (share repurchases/opportunistic M&A), we believe secular tailwinds from the evolving threat environment should continue to benefit Check Point and its next-generation security solutions, with a number of blades front and center. We maintain our Outperform rating while lowering our price target from $95 to $90 to reflect a choppier macro environment.”

Currently, the analyst consensus on Check Point is Moderate Buy and the average price target is $91.25, representing a 15.8% upside. In a report issued on January 28, Oppenheimer also maintained a Buy rating on the stock with a $95 price target.

Based on Check Point`s latest earnings report from September 30, the company posted quarterly revenue of $403.9M and quarterly net profit of $167.7M. In comparison, last year the company earned revenue of $420.6M and had a net profit of $185.8M.

Financial bloggers on sites such as SeekingAlpha, and others, seem to have a Positive view on CHKP. When evaluating the opinions of financial bloggers over the last 3 months, 92% of bloggers have indicated a Bullish sentiment, while 8% have indicated a Bearish sentiment.

According to, Ives is a 2-star analyst with an average return of -0.8% and a 43.1% success rate. Ives covers the Technology sector, focusing on stocks such as Synchronoss Technologies, Nuance Communications, and Activision Blizzard.

Check Point Software Technologies Ltd develops, and markets software and combined hardware and software products and services for information technology security.