Check Point (CHKP) Taken to Woodshed but Cash Hoard May Limit Downside
In the wake of the company’s Q4 earning report, MKM Partners maintained a Buy rating on Checkpoint Software (NASDAQ: CHKP) but cut its price target to $48.00 (from $60.00).
Analyst Israel Hernandez said "While we were prepared for soft license sales, the unexpected decline in deferred revenue raises questions regarding the stability of the installed base and potential share loss, contributing to the magnitude of this morning’s sell-off."
At present, Check Point Stock is lower by over 12 percent.
"With 36% of CHKP’s market cap in cash, valuation keeps us at Buy, but we acknowledge that the multiple is likely to remain compressed until Check Point can show a reacceleration in growth," said Hernandez.
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 $47.42 yesterday, with a 52 week range of $43.18-$65.00.
Analyst Israel Hernandez said "While we were prepared for soft license sales, the unexpected decline in deferred revenue raises questions regarding the stability of the installed base and potential share loss, contributing to the magnitude of this morning’s sell-off."
At present, Check Point Stock is lower by over 12 percent.
"With 36% of CHKP’s market cap in cash, valuation keeps us at Buy, but we acknowledge that the multiple is likely to remain compressed until Check Point can show a reacceleration in growth," said Hernandez.
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 $47.42 yesterday, with a 52 week range of $43.18-$65.00.