Shares of Check Point Software (NASDAQ:CHKP) slipped today, which can be attributed to an analyst downgrade. Adam Tindle of Raymond James changed his rating from Buy to Hold without assigning a price target.
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Tindle cited that the company could potentially be facing a period of lower spending. He also pointed to a “lackluster” reception for new products in key areas at the same time as an investment cycle at Check Point. Nevertheless, Tindle likes the company’s balance sheet and free cash flow, which has been allowing it to allocate funds to buybacks.
Overall, Wall Street analysts have a Moderate Buy consensus rating on CHKP stock based on 10 Buys, 10 Holds, and three Sells assigned in the past three months. However, it also appears that analysts believe the stock is almost fully valued, as the average price target of $138.70 per share suggests only 4.23% upside potential.
