Check Point Software stock price target lowered to $220 by Cantor Fitzgerald

Published 30/07/2025, 22:42
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Investing.com - Cantor Fitzgerald lowered its price target on Check Point Software (NASDAQ:CHKP) to $220.00 from $230.00 on Wednesday, while maintaining a Neutral rating on the stock. According to InvestingPro data, the cybersecurity company maintains impressive gross profit margins of 88.26% and demonstrates strong financial health with an overall score of "GOOD."

The price target reduction follows Check Point’s second-quarter 2025 results, which showed the company beating FactSet consensus top-line estimates, demonstrating solid product demand. The company’s revenue grew 6.4% over the last twelve months, with a healthy return on equity of 31%.

Despite the revenue beat, Security Subscriptions sales, billings, and operating margins fell below consensus expectations, prompting the analyst firm to adjust its outlook based on weaker software demand.

Cantor Fitzgerald noted that Check Point management reported higher-than-usual deal slippage during the quarter, though these deals subsequently closed in the first few weeks of the third quarter and are expected to contribute approximately 3% to third-quarter billings.

Check Point shares fell approximately 14.5% during Wednesday’s trading session while the S&P remained relatively flat, with the decline likely driven by the underperformance in subscription revenue and billings.

In other recent news, Check Point Software Technologies Ltd. reported a 6% increase in second-quarter revenue, surpassing analyst expectations. This growth was attributed to strong performance in its emerging technologies portfolio and Quantum Force appliances. However, the company’s billings growth of 3%-4% year-over-year to $642 million fell short of the anticipated $649 million, as noted by Mizuho (NYSE:MFG), which maintained a Neutral rating while reducing its price target from $240 to $215. Stifel also adjusted its outlook, lowering its price target to $200 from $220, citing a "mixed/noisy" quarter with some metrics exceeding expectations and others underperforming. Despite the revenue outperformance, areas such as RPO, billings, subscription revenue, maintenance revenue, and margins saw deceleration or missed targets. Mizuho highlighted that several significant deals were delayed into the third quarter but have since been closed. Both Stifel and Mizuho’s adjustments reflect the mixed nature of the company’s financial results. These developments come amid Check Point Software’s efforts to strengthen its market position through innovative technology offerings.

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