Why Argus Upgraded Check Point Software Shares

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In a report published Tuesday, analyst Joseph Bonner of Argus upgraded
Check Point Software Technologies Ltd.
CHKP
to Buy. The price target was set to $103. The company reported its 1Q EPS above guidance, with revenue growth in the high single digits. "We see Check Point as one of the few established players in internet security with both the technology and the management stability needed to take advantage of an increasingly toxic malware threat environment," the analyst said. Check Point reported another quarter of revenue growth at 20 percent, with other segments reported mid-single to low-double digit growth, driven by the company's software blade products. The company intends to increase investments in 1H15 to capitalize on the upcoming opportunities in IT security. The investments are expected to bear fruit in the latter half of 2015 and in 2016. "These investments may be seen not only in the company's recent tuck-in acquisitions, but also in the ongoing expansion of its sales and sales support staff," Bonner explained. With the company continuing to introduce innovative products in an environment of internet security threats, the stock is well positioned to see upside despite the 28 percent increase witnessed last year. "While Check Point stock has had a good run in the last year, with an increase of 28%, we think that it is well positioned to ramp higher in the current malware threat environment."
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Posted In: Analyst ColorUpgradesAnalyst RatingsArgus
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