Nomura Securities Maintains a 'Buy' on Checkpoint Software (CHKP); Q1 Disappoints, But Still Buyers On Weakness

Nomura Securities maintains a 'Buy' on Checkpoint Software (NASDAQ: CHKP) price target of $72.00.

Analyst, Rick Sherlund, said, "CHKP announced mixed 1Q’12, results with billings growth decelerating to 9% y-y from 18% y-y. It is unclear if this deceleration was due to a slowing business or an air pocket created by a strong 4Q pulling business from 1Q. We have lowered our forward billings and revenue estimates to reflect potential from slowing growth, but better-than-expected margins and a lower tax rate have left 2013E/2014E EPS unchanged at $3.24/$3.63, vs. the Street at $3.20/$3.54, respectively. We are positive on the name given its low multiple (15x 2012E EPS ex-cash) and high cash flow. We look for billings growth to stabilize in the coming quarters."

For an analyst ratings summary and ratings history on Checkpoint Software click here. For more ratings news on Checkpoint Software click here.

Shares of Checkpoint Software closed at $60.76 yesterday.

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