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On Monday, Cantor Fitzgerald reaffirmed its Neutral stance on Checkpoint Software (ETR:SOWGn) Technologies (NASDAQ:CHKP), maintaining a price target of $200.00. The firm's analyst, Jonathan Ruykhaver, provided insights into the company's future, predicting that the outlook for fiscal year 2025 should align with or slightly exceed the current market consensus, which anticipates a 5.5% increase in revenue. This projection aligns with the company's historical performance, as InvestingPro data shows a 5.65% revenue growth over the last twelve months. With the stock trading near its 52-week high of $210.70, investors seeking detailed valuation metrics can access comprehensive analysis through InvestingPro's Research Reports. This expectation is underpinned by growing partner confidence in upselling Harmony (JO:HARJ) and Infinity products, as well as the ongoing refresh of firewalls.
Ruykhaver highlighted that the main concern for Checkpoint's revenue outlook is the increasing challenges in the EMEA region, which became more pronounced in the third quarter of 2024. On the topic of profit margins, with the appointment of a new CEO and potential for increased operational expenditures, it is expected that the guidance will be in the vicinity of the current FactSet consensus of 42.6%, with the firm's own estimate slightly higher at 43.1% for fiscal year 2024. Notably, InvestingPro data reveals the company maintains impressive gross profit margins of 88.62% and has earned a "GREAT" financial health score, suggesting strong operational efficiency despite market challenges. However, the midpoint is likely to be closer to 42%.
The analysis suggests that while feedback from partners regarding new product upselling is positive, the year 2025 is anticipated to be a period of additional investment for Checkpoint. The company is gearing up to better position itself for substantial growth through its new Secure Access Service Edge (SASE) and Security Operations (Secops) products. The strategic focus for the upcoming year appears to be on strengthening Checkpoint's market position through these new offerings. For investors seeking deeper insights into CHKP's investment potential, InvestingPro offers exclusive access to over 30 additional financial metrics and expert analysis, helping you make more informed investment decisions.
In other recent news, Checkpoint Software has been a focal point of multiple analyst reviews. Cantor Fitzgerald initiated coverage on the cybersecurity firm, assigning a Neutral rating and a 12-month price target of $200. The firm recognized Checkpoint Software's reliable cash flows, robust profit margins, and potential growth from its subscription software segment. Similarly, Piper Sandler maintained a Neutral rating while increasing its price target to $195, noting the influence of rising valuations in Checkpoint's peer group.
Goldman Sachs downgraded Checkpoint Software from "Buy" to "Neutral," despite a price target increase to $207. This change was based on subdued expectations for the company's earnings per share growth in 2025. Deutsche Bank (ETR:DBKGn), on the other hand, maintained a Hold rating on Checkpoint Software, with a steady price target of $200. The bank's analyst pointed to the recent appointment of Nadav Zafrir as CEO as a potential catalyst for the firm's stock.
In terms of financial performance, Checkpoint Software reported a 7% year-over-year revenue increase to $635 million in the third quarter of 2024. The company also saw a non-GAAP EPS rise of 9% to $2.25 and a subscription revenue growth of 12%. Check Point's recent acquisition of Cyberint for $186 million is anticipated to enhance security operations capabilities.
Lastly, Check Point Software Technologies Ltd. unveiled its AI-based Quantum (NASDAQ:QMCO) Firewall R82. Concurrently, SolarEdge Technologies (NASDAQ:SEDG) elected Avery More as the new Chairman of the Board of Directors, succeeding Nadav Zafrir, who will continue to serve as a board member.
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