Needham & Company Reiterates a 'Buy' on Checkpoint Software (CHKP); Raising PT After Strong JuneQ and Outlook
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Price: $160.80 +1.27%
Rating Summary:
18 Buy, 27 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
Rating Summary:
18 Buy, 27 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 11 | New: 13
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Needham & Company reiterates a 'Buy' on Checkpoint Software (NASDAQ: CHKP), raises PT from $61 to $68.
Needham analyst says, "The JuneQ results for Check Point were above consensus on revenue and EPS by a modest beat, which is typical of CHKP. The overall tone of the call was positive, and more upbeat than last quarter’s call; specifically, the MarQ results were a strong “beat” yet guidance last call was reiterated for CY11, showing conservatism. On Monday’s JuneQ call, the “beat” was paired with a raise to CY11 guidance. We believe the commentary about solid growth across all regions, y/y growth of $1m+ deals (37 vs. 25 yr ago), plus the raise to CY11 shows confidence, particularly when facing the SepQ seasonally soft quarter, and macro-questions investors have about all software companies in EMEA. Our thesis on CHKP remains unchanged for several quarters – the combination of customer migration from the acquired Nokia (NYSE: NOK) business, coupled with secular strength in network security software spending, is driving solid results with (we believe) higher than average visibility at CHKP."
"We are raising our CY11 from $1222m and $2.76 up to $1237m and $2.82 EPS. No change to our CY12 of $1368m and $3.18, which is above consensus $1347m and $3.08 EPS."
For more ratings news on Checkpoint Software click here and for the rating history of Checkpoint Software click here.
Shares of Checkpoint Software closed at $61.17 yesterday.
Needham analyst says, "The JuneQ results for Check Point were above consensus on revenue and EPS by a modest beat, which is typical of CHKP. The overall tone of the call was positive, and more upbeat than last quarter’s call; specifically, the MarQ results were a strong “beat” yet guidance last call was reiterated for CY11, showing conservatism. On Monday’s JuneQ call, the “beat” was paired with a raise to CY11 guidance. We believe the commentary about solid growth across all regions, y/y growth of $1m+ deals (37 vs. 25 yr ago), plus the raise to CY11 shows confidence, particularly when facing the SepQ seasonally soft quarter, and macro-questions investors have about all software companies in EMEA. Our thesis on CHKP remains unchanged for several quarters – the combination of customer migration from the acquired Nokia (NYSE: NOK) business, coupled with secular strength in network security software spending, is driving solid results with (we believe) higher than average visibility at CHKP."
"We are raising our CY11 from $1222m and $2.76 up to $1237m and $2.82 EPS. No change to our CY12 of $1368m and $3.18, which is above consensus $1347m and $3.08 EPS."
For more ratings news on Checkpoint Software click here and for the rating history of Checkpoint Software click here.
Shares of Checkpoint Software closed at $61.17 yesterday.
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