Analyst Adam Borg of Stifel Nicolaus maintained a Hold rating on Check Point, boosting the price target to $211.00.
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Adam Borg’s rating is based on a combination of factors that reflect both positive developments and ongoing challenges for Check Point Software Technologies. The company reported strong third-quarter results with a notable year-over-year increase in billings, marking the highest growth since 2011. Despite this, the operating margin fell short of expectations, and future earnings are projected to be impacted by foreign exchange fluctuations and recent acquisitions.
Looking forward, Check Point’s management has expressed optimism about growth prospects, supported by new leadership and strategic price increases. However, Borg remains cautious, noting that while the company is taking steps to rejuvenate growth, achieving sustainable double-digit top-line growth will take time and may require a reduction in operating margins. As a result, the current valuation appears to adequately reflect these dynamics, leading to a Hold rating as Borg awaits further evidence of sustained growth momentum.
According to TipRanks, Borg is a 5-star analyst with an average return of 16.5% and a 75.13% success rate. Borg covers the Technology sector, focusing on stocks such as Autodesk, Procore Technologies, and Okta.