CHKP - Check Point Software Garners Cautious Optimism From Analysts: Solid Revenue Growth Clashes With Market Share Concerns | Benzinga
Mizuho analyst Gregg Moskowitz maintained Check Point Software Technologies Ltd (NASDAQ:CHKP) with a Neutral and raised the price target from $150 to $160.
The analyst noted that total fourth-quarter revenue growth of 4% Y/Y slightly exceeded consensus, as subscription revenue grew 15% Y/Y. The billings declined 1% Y/Y (vs. the Street’s flattish growth forecast), and product revenue (-9% Y/Y) remained significantly challenged.
More positively, operating margins of 46.5% were better than expected, he said. Meanwhile, it provided a generally solid initial outlook for 2024, including revenue growth of ~6% Y/Y at the midpoint. And notably, CHKP announced a CEO succession plan, the analyst added.
More broadly, while valuation is relatively inexpensive, he noted that Check Point continues to cede market share, and the company may struggle to execute until the operating environment meaningfully improves consistently. Moskowitz projects first-quarter revenue and EPS of $600 million (prior $598 million) and $2.03, respectively.
Wedbush analyst Daniel Ives maintained Check Point with an Outperform and raised the price target from $170 to $185.
The analyst remains positive on CHKP as the company ...