Needham & Company reiterated a Buy rating and $100 price target on Checkpoint Software (NASDAQ: CHKP) following 2Q results. Analyst Scott Zeller said that 2Q results were a “beat” and likely better than feared, and believes CHKP continues to steadily grow its footprint in data centers. CHKP’s $395m revenue and $0.99 EPS were both above $392m and $0.95 EPS consensus. Management guided revenue to $401m near $403m consensus, and $0.97 EPS in line with 3Q consensus.

Zeller commented, "The Check Point results for JuneQ were a “beat” and likely better than feared, given CHKP shares underperformed going into earnings vs. broad security group. We believe CHKP continues to steadily grow its footprint in data centers, primarily through “software blade” add-on sales as well as strength in its high-end data center offering. We view the “refresh cycle” of network security spending as early, and a benefit to CHKP, but also to FTNT, PANW, and IMPV. In our view CHKP has emerged from a 12-18mo period in which industry observers looked for evidence of PANW dislocating CHKP, but we’ve observed CHKP weather the competitive storm and thrive, as evidenced by the +18% y/y growth in deferred revenue. Reiterate BUY and $100 target, slight change to CY15 estimates, no CY16 changes."

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Shares of Checkpoint Software closed at $84.23 yesterday.