Standpoint Research Downgrades Checkpoint Software (CHKP) to Hold
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Price: $165.22 +0.45%
Rating Summary:
21 Buy, 27 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
Rating Summary:
21 Buy, 27 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 0 | Down: 0 | New: 0
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Standpoint Research downgraded Checkpoint Software (NASDAQ: CHKP) from Buy to Hold.
Analyst Ronnie Moas comments, "On October 16 CHKP shares were hit hard and dropped 15% on 17,000,000 shares traded / 8X the average daily volume. This was a sell-off that was not justified … a complete over-reaction by the market. On October 19 I raised CHKP from Hold to Buy looking to take advantage of this absolute and relative valuation discrepancy. The shares have since recovered nearly the entire loss from October 16 and are once again fairly valued at 13X our estimate for 2013 and 15X trailing twelve months earnings. A look at the chart may give the appearance that this name has more upside, but I disagree. CHKP should never have run up to $65 as it did in April. In order to justify a $65 share price, CHKP needs to deliver $5.00 in EPS. I think it will take at least two years before CHKP hits the $4.00 mark. Since our October 19 upgrade three other firms upgraded CHKP and that has the share price back where it should be (fair value)"
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 $46.33 yesterday.
Analyst Ronnie Moas comments, "On October 16 CHKP shares were hit hard and dropped 15% on 17,000,000 shares traded / 8X the average daily volume. This was a sell-off that was not justified … a complete over-reaction by the market. On October 19 I raised CHKP from Hold to Buy looking to take advantage of this absolute and relative valuation discrepancy. The shares have since recovered nearly the entire loss from October 16 and are once again fairly valued at 13X our estimate for 2013 and 15X trailing twelve months earnings. A look at the chart may give the appearance that this name has more upside, but I disagree. CHKP should never have run up to $65 as it did in April. In order to justify a $65 share price, CHKP needs to deliver $5.00 in EPS. I think it will take at least two years before CHKP hits the $4.00 mark. Since our October 19 upgrade three other firms upgraded CHKP and that has the share price back where it should be (fair value)"
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 $46.33 yesterday.
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