Market Overview

UPDATE: Deutsche Bank Upgrades Check Point Software Technologies


Analysts at Deutsche Bank upgraded Check Point Software Technologies Ltd. (NASDAQ: CHKP) from Hold to Buy and raised their price target from $70.00 to $90.00.

Check Point develops, markets and supports software for information technology security.

The Numbers

Deutsche Bank analyst Karl Keirstead expects that security IT will be a strong performing sector once again in 2015. Deutsche Bank notes that Check Point currently trades at around 18 times their projected 2015 non-GAAP earnings per share and only 11.7 times free cash flow predictions. “We view these multiples as attractive given CHKP’s exposure to the fast-growing security segment and its accelerating growth profile,” Keirstead said.

Other Analyst Action

Deutsche Bank’s upgrade is the latest analyst action on Check Point, but other analysts have recently given their take on the stock as well. In November, Jefferies initiated coverage of Check Point with a Buy rating and an $88.00 price target. In October, Needham also upgraded Check Point from Hold to Buy.

Major Upside

Check Point closed up 2.3 percent at $77.12. Deutsche Bank's $90 price target represents an 18 percent upside for the stock from current levels. Check Point stock has already had an exceptional 2014, up more than 19 percent year-to-date.

A Valuation Perspective

Check Point’s current price to earnings ratio (P/E) and forward P/E are a reasonable 22.2 and 18.5, respectively. The stock’s price-to-earnings to growth ratio (PEG) of 2.5 is on the high side, but the company has no significant debt on its balance sheet. Check Point’s projected annual earnings growth rate over the next five years is 8.8 percent.

Latest Ratings for CHKP

Jul 2020Credit SuisseMaintainsNeutral
Jul 2020Morgan StanleyMaintainsUnderweight
Jul 2020WedbushMaintainsOutperform

View More Analyst Ratings for CHKP
View the Latest Analyst Ratings


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Posted-In: Deutsche Bank Jefferies Karl Keirstead NeedhamAnalyst Color Upgrades Price Target Analyst Ratings

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