Analyst Roger Boyd from UBS maintained a Hold rating on Check Point and increased the price target to $215.00 from $210.00.
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Roger Boyd’s rating is based on a combination of factors that reflect both positive and cautious outlooks for Check Point Software Technologies Ltd. The company showed a strong recovery in the third quarter, with impressive year-over-year billings growth of around 20%, even after accounting for deal timing. This growth in billings, along with an increase in current services billings and RPO growth, suggests potential for double-digit subscription revenue growth by 2026. However, Boyd expresses caution regarding the overall revenue growth, as he is not yet confident in achieving double-digit total revenue growth without further acceleration in product growth.
Additionally, the stock’s valuation, trading at 17 times EV/FCF and 19 times P/E for 2026 estimates, presents a balanced risk-reward scenario. Boyd is looking for more assurance in the sustainability of product growth and the potential for increased maintenance revenue growth. The company faces operational margin pressures due to M&A impacts and foreign exchange headwinds, which are expected to lower operating margins below 40% by 2026. These factors combined lead to a Hold rating, as Boyd seeks further evidence of growth durability and valuation support.
Boyd covers the Technology sector, focusing on stocks such as Check Point, Fortinet, and Qualys. According to TipRanks, Boyd has an average return of 8.9% and a 62.96% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $235.00 price target.