In a report released yesterday, Kenneth Talanian from Evercore ISI maintained a Hold rating on Check Point (CHKP), with a price target of $105. The company’s shares closed yesterday at $113.25.
Talanian commented:
“We do not believe that these results are likely to propel the stock higher in the short-term. We will learn more when the company guides on the 8:30am conference call, however. Check Point continues to deliver steady results, but we believe from a tactical perspective this was likely fully reflected in the ~12x EV/CY20 FCF valuation at yesterday’s close, assuming the company continues to struggle to grow. If we were to see a market correction where valuations crack on the higher-beta software names, CHKP could be viewed as more defensive and potentially sustain this valuation. Over time, however, it is more likely that the stock trends towards a low double-digit FCF multiple.”
According to TipRanks.com, Talanian is a 5-star analyst with an average return of 21.2% and a 81.5% success rate. Talanian covers the Technology sector, focusing on stocks such as CyberArk Software, Proofpoint Inc, and FireEye Inc.
Check Point has an analyst consensus of Moderate Buy, with a price target consensus of $123, implying an 8.6% upside from current levels. In a report issued on July 11, Robert W. Baird also maintained a Hold rating on the stock with a $120 price target.
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Based on Check Point’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $186 million. In comparison, last year the company had a net profit of $198 million.
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Check Point Software Technologies Ltd. engages in the development and market of software and hardware solutions for information technology security. The company products include threat prevention, next generation firewalls, mobile security, and security management.
