Needham & Company upgraded Checkpoint Software (NASDAQ: CHKP) from Hold to Buy with a price target of $80.00.

Analyst Scott Zeller commented, "Our decision to upgrade shares of Check Point today have less to do with valuation, and more to do with (a) surprise strong performance in blades; (b) ongoing strong performance with high-end data center appliances; (c) the current macro environment, which we see as favoring defensive investments, and (d) our belief that CHKP will be a more meaningful participant in Next Gen Firewall than we first thought. On valuation, we believe investors may be more willing to expand the P/E multiple given the improving growth profile of license & blade revenue, which we see as a blended +11% growth rate in CY14. We are raising estimates on strong SeptQ results and guidance, and setting a price target of $80, which is 15x our new $4.10 CY15E EPS and 7x EV/CY15E revenue."

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Shares of Checkpoint Software closed at $71.00 yesterday.