TD Cowen raises Checkpoint Software target to $250

Published 31/01/2025, 17:36
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The report from TD Cowen reflects a belief that Checkpoint Software (ETR:SOWGn) is well-positioned to capitalize on the healthy growth within the industry, as indicated by their IT Spending Survey. For deeper insights into Checkpoint’s valuation and growth prospects, InvestingPro subscribers have access to 16 additional ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks. The analyst’s perspective suggests that Checkpoint’s comprehensive suite of products will be a significant factor in reaching its long-term financial targets.

The report from TD Cowen reflects a belief that Checkpoint Software is well-positioned to capitalize on the healthy growth within the industry, as indicated by their IT Spending Survey. For deeper insights into Checkpoint’s valuation and growth prospects, InvestingPro subscribers have access to 16 additional ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks. The analyst’s perspective suggests that Checkpoint’s comprehensive suite of products will be a significant factor in reaching its long-term financial targets.

Eyal expressed confidence in Checkpoint Software’s potential to meet or even surpass the consensus estimates for 2025, citing a 6% year-over-year increase. The company’s broad portfolio of solutions is expected to help it achieve long-term performance goals, including a high-single-digit revenue growth rate. The raised price target of $250 is based on a multiple of 9 times TD Cowen’s 2026 estimated revenue and 23 times the projected earnings per share for 2026, which adjusts to 21 times when excluding cash.

The report from TD Cowen reflects a belief that Checkpoint Software is well-positioned to capitalize on the healthy growth within the industry, as indicated by their IT Spending Survey. For deeper insights into Checkpoint’s valuation and growth prospects, InvestingPro subscribers have access to 16 additional ProTips and a comprehensive Pro Research Report, part of the platform’s coverage of 1,400+ US stocks. The analyst’s perspective suggests that Checkpoint’s comprehensive suite of products will be a significant factor in reaching its long-term financial targets.

In other recent news, Checkpoint Software has seen a series of upward adjustments to its price target by several analyst firms following robust Q4 results and promising business acquisitions. Scotiabank (TSX:BNS) analyst Patrick Colville raised the target to $250 while maintaining a Sector Outperform rating, following strong revenue and earnings performance. This move aligns with recent strategic decisions, including the creation of a Chief Revenue Officer position and the appointment of new CEO, Nadav Zafrir.

BofA Securities increased Checkpoint Software’s target to $230, maintaining a neutral rating after reporting a 6.1% year-over-year revenue growth, surpassing the 5.3% growth anticipated by analysts. The company’s earnings per share also exceeded estimates, coming in at $2.70.

Stifel raised Checkpoint Software’s target to $220, maintaining a hold rating, and highlighting the company’s potential for mid-to-high single-digit top-line growth. Cantor Fitzgerald lifted the company’s stock price target to $220, noting robust Q4 results that surpassed consensus expectations.

Morgan Stanley (NYSE:MS) increased Checkpoint’s stock price target to $200, following a remarkable Q4 performance characterized by a notable beat on the top line. These recent developments reflect the confidence of various analyst firms, including Scotiabank, BofA Securities, Stifel, Cantor Fitzgerald, and Morgan Stanley, in Checkpoint Software’s growth trajectory and financial health.

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