BofA Securities Downgrades Checkpoint Software (CHKP) to Neutral

BofA Securities analyst Tal Liani downgraded Checkpoint Software (NASDAQ: CHKP) from Buy to Neutral with a price target of $195.00 (from $205.00).

The analyst comments "The focal point of the quarter was the weak billings growth of 5.8% YoY below Street’s 8.2%. However, we are less worried about billings and believe it will largely recover next quarter. Instead, we are more focused on the low growth trajectory despite new products/portfolio and general go-to-market challenges. The Street is generally looking to have visibility towards double digit growth and our analysis suggests it would not be feasible in 2025, requiring a massive growth acceleration of appliance revenues. With the stock up 37% L12M, trading at a ~15x forward EV/FCF multiple with a mid-single digit growth profile, we believe further stock upside potential is limited and downgrade our rating from Buy to Neutral. We fine-tune our estimates (see Exhibit 2 for details) and reduce our PO from $205 to $195, now based on ~16x 2026E EV/FCF vs. 18x 2025E EV/FCF prior."

For an analyst ratings summary and ratings history on Checkpoint Software click here. For more ratings news on Checkpoint Software click here.

Shares of Checkpoint Software closed at $177.87 yesterday.

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