Needham & Company Reiterates a 'Buy' on Checkpoint Software (CHKP); Network Security Spending Remains Robust

Needham & Company reiterates a 'Buy' on Checkpoint Software (NASDAQ: CHKP), PT $61.

Needham analyst says, "We are reiterating our rating on Check Point Software, as an idea we favor in the current challenging market climate, and as a name we believe has continued strong fundamentals. In the current challenging tech tape, we believe software valuations in general are under pressure and contracting. We favor Check Point because it is not “stretched” on valuation relative to the rest of software, as it currently trades at 13x our CY12 $3.18 EPS estimate, ex-net cash. We have confidence in CHKP’s ability to execute in CY11, based on a continuing trend of add-on sales of “software blades” of additional functionality to new and existing customers; we also have confidence the migration of Nokia customers is a multi-year revenue event, and our recent field discussions suggest Nokia customer-driven revenue remains healthy."

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 $52.34 yesterday.

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