Checkpoint Software price target raised to $240 from $230 at Mizuho

Published 16/06/2025, 12:36
© Reuters.

Mizuho (NYSE:MFG) raised its price target on Checkpoint Software (NASDAQ:CHKP) to $240.00 from $230.00 on Monday, while maintaining a Neutral rating on the cybersecurity firm’s stock. The company, currently valued at $23.7 billion, has seen its shares rise 17.3% year-to-date, trading near its 52-week high of $234.35.

The price target increase reflects recent appreciation in comparable company multiples, according to Mizuho. The firm noted it has grown more constructive on Checkpoint over the past six months, though investor expectations have also risen significantly. According to InvestingPro data, the company maintains impressive gross profit margins of 88.3% and has received upward earnings revisions from 14 analysts for the upcoming period.

Checkpoint’s Global Head of Investor Relations Kip Meintzer told Mizuho during recent virtual meetings that the company hasn’t experienced any negative impact from macroeconomic conditions to date. Meintzer also expressed confidence that the company would see accelerating subscription revenue growth by the end of the year.

Mizuho reported that Checkpoint expects healthy appliance refresh cycles to persist throughout the year. Despite these positive indicators, the firm maintained its Neutral stance on the stock.

The research firm stated that Checkpoint "still has much to prove as it pertains to further reaccelerating the business in a meaningful way," explaining its decision not to upgrade the stock rating despite the higher price target.

In other recent news, Check Point Software Technologies Ltd. has announced the acquisition of Veriti Cybersecurity, a company known for its automated threat exposure and mitigation platform. This strategic move is expected to enhance Check Point’s hybrid mesh security vision by integrating Veriti’s capabilities into its existing platform, allowing for multi-vendor remediation and real-time threat intelligence. Additionally, Check Point has introduced its Quantum Smart-1 Management Appliances, which promise to double the capacity for managed gateways and significantly boost log rates, addressing the growing needs of hybrid enterprises. The new appliances are designed to streamline security management and improve visibility across various IT environments.

In another development, Check Point has enhanced its Quantum Force Security Gateways, offering a 15%-25% increase in threat prevention throughput through a software update. The company also unveiled a new range of AI-powered Quantum Force Branch Office Security Gateways, which claim to deliver four times the performance of previous models. Meanwhile, TD Cowen has maintained its Buy rating on Check Point, with a price target of $285, citing the strategic significance of the Veriti acquisition in strengthening Check Point’s competitive position. Furthermore, Check Point has reached the "In Process" status for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline, marking a critical step towards full authorization to provide services to the U.S. government.

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