Shares of the Israeli cybersecurity firm, Check Point Software (NASDAQ: CHKP) inched up in morning trading on Tuesday after Stifel analyst Adam Borg initiated coverage of the stock with a Hold rating with a price target of $130. Borg’s price target implies an upside potential of 5.8% at current levels.
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The analyst noted the positives for the company including an industry-leading operating margin and its portfolio of “high-quality” assets. Borg added that the company was looking at growing at a faster pace by investing “aggressively” in R&D and sales and marketing.
Borg commented, “Net/net, we believe Check Point has a number of drivers to sustain mid-to-high single-digit top-line growth along with industry-leading margins, and think valuation largely reflects these dynamics.” The analyst added that while CHKP shares ” trade at a discount to peers Palo Alto and Fortinet, we think the discount is warranted until we get more confidence that Check Point can sustainably accelerate revenue growth into the double-digit range.”
CHKP reported mixed Q1 results around a week back.
Overall, Wall Street analysts remain sidelined about CHKP stock with a Hold consensus rating based on nine Buys, 12 Holds, and three Sells.
