UPDATE: Nomura Reduces PT to $52 on Check Point Software Technologies on Lower Billings Growth

Nomura reiterated its Buy rating on Check Point Software Technologies CHKP but lowered its price target from $60 to $52. Nomura noted, "Check Point announced 3Q 12 results, with billings growth decelerating to -1% YoY (vs 9% YoY in the March and June quarters). Issues include a slow Europe (37% of revenues), price increases owing to FX, substitution for lower-priced products that have undergone substantial performance increases, and competitive pressures. … The ongoing deceleration in billings momentum was met with disappointment, with the stock closing down 13%. We are positive on the name, given its sticky customer base and commitment to returning cash to shareholders through robust buybacks." Check Point Software Technologies closed at $41.15 on Wednesday.