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On Tuesday, TD Cowen reiterated its positive stance on Checkpoint Software (NASDAQ:CHKP), maintaining a Buy rating and a price target of $285.00. Currently trading at $229.65, the company has demonstrated strong momentum with a 25.5% gain over the past six months. The firm’s analyst, Shaul Eyal, highlighted the strategic significance of a recent acquisition by Checkpoint Software, emphasizing its potential to enhance the company’s competitive position in the cybersecurity market. According to InvestingPro analysis, the company maintains excellent financial health with an overall score of "GREAT."
The acquisition in question is expected to bolster Checkpoint Software’s capabilities in Exposure Management, a field that is gaining traction due to its critical importance in cybersecurity. With impressive gross profit margins of 88.3%, the company appears well-positioned to integrate new acquisitions effectively. The addition of the acquired assets is anticipated to strengthen Checkpoint’s position relative to competitors such as Armis, Axonius, Claroty, Nozomi, Fortinet (NASDAQ:FTNT), and Palo Alto Networks (NYSE:NASDAQ:PANW).
Eyal believes that this move is a key step in Checkpoint Software’s strategy to realize its vision for a hybrid mesh security architecture. The acquired company, Veriti, is set to enhance Checkpoint’s null Platform™ by supporting an open-garden approach. This approach is designed to enable multi-vendor remediation across various security layers. For deeper insights into Checkpoint Software’s valuation and growth potential, access the comprehensive Pro Research Report available on InvestingPro, which currently indicates the stock may be trading above its Fair Value.
The analyst’s commentary underscores the importance of this strategic acquisition for Checkpoint Software, suggesting that it will provide the company with a stronger foothold in the cybersecurity industry. The reiterated Buy rating and price target reflect TD Cowen’s confidence in the value that the acquisition will bring to Checkpoint Software and its shareholders, with the stock currently maintaining strong momentum near its 52-week high of $234.35.
In other recent news, Check Point Software Technologies reported strong first-quarter earnings for fiscal year 2025, with notable growth in product revenue and billings. The company saw a 14% year-over-year increase in product revenue, the highest since the second quarter of fiscal year 2011, and a 7% rise in billings. Check Point has maintained its full-year guidance for 2025, despite geopolitical uncertainties. In a strategic move, Check Point announced the acquisition of Veriti Cybersecurity, aiming to enhance its cybersecurity offerings by integrating Veriti’s Preemptive Exposure Management platform. This acquisition is expected to close by the end of Q2 2025.
Additionally, Check Point advanced in its efforts to provide services to the U.S. government by achieving "In Process" status for the Federal Risk and Authorization Management Program (FedRAMP) Moderate baseline. This marks a critical step towards full FedRAMP Authorization. On the analyst front, Stifel maintained a Hold rating with a $220 price target, highlighting strong financial performance, while Cantor Fitzgerald reiterated a Neutral stance with the same price target. Truist Securities, however, maintained a Buy rating with a $250 target, citing confidence in Check Point’s strategy and market positioning. These developments reflect Check Point’s ongoing commitment to innovation and growth in the cybersecurity sector.
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