Checkpoint Software (CHKP) PT Raised to $240 at Raymond James

Raymond James analyst Adam Tindle raised the price target on Checkpoint Software (NASDAQ: CHKP) to $240.00 (from $200.00) while maintaining a Outperform rating.

The analyst comments "We reiterate our Outperform rating on CHKP following 4Q results that were well above where we thought buyside bogeys were for key metrics (link), and the acceleration is consistent with our checks (link). Our anticipated era of potential growth acceleration under new CEO Nadav Zafrir has begun with double-digit billings growth, and we anticipate more color on a sustained higher growth trajectory for Check Point at its upcoming CPX conference. Recent disclosures suggest Harmony e-mail has gone from essentially zero prior to the Avanan acquisition in late-2021 to now $100M of ARR, which suggests just ~2x EV/revenue for this asset in hindsight. Replicating this strategy via a new CEO with a core competency of identifying new growth opportunities in this industry could create significant shareholder value over time, and early indications on the SASE pipeline suggest the Perimeter81 acquisition may ultimately become the next asset to follow this trajectory. This should push another year of double-digit subscription revenue growth and should continue to push the valuation multiple higher, consistent with our initial upgrade thesis."

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