Oppenheimer Remains Bullish on Check Point Software Technology (CHKP) Following Investor Meetings
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Oppenheimer maintained an Outperform rating and $94.00 price target on Check Point Software Technology (NASDAQ: CHKP) following recent investor meetings. Oppenheimer believes that demand for both Next-Gen Threat Prevention solutions and competition remains healthy.
Analyst Shaul Eyal commented, "Our key takeaways from recent investor meetings are: 1) CHKP’s 1H16 discounting efforts were mostly driven by FX headwinds in various emerging market economies, as well as some product bundling as an incentive to grow its vast installed base; 2) Software blades continue to grow as a percent of revenues (~22%), driven most notably by the ATP Sandblast blade; 3) Demand for CHKP's addressable market (Next-Gen Threat Prevention) remains healthy as refresh cycles appear normal (about 15-20% of installed base every year) and as customers continue to require higher throughput in perimeter defense solutions; 4) CHKP's pristine balance sheet of $3.7B cash (~$22 cash/share) provides it with the flexibility to assess various capital allocation programs, although NT focus remains on buybacks/M&A (mostly tuck-ins)."
Shares of Checkpoint Software closed at $75.32 yesterday.
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