4 Keys From Check Point Software's Recent Investor Meetings

Oppenheimer revealed its four key takeaways post its investor meetings with Check Point Software Technologies Ltd. CHKP and reaffirmed its Outperform rating and $94 price target on the stock.

Following are the brokerage's key takeaways from management meetings:

1) CHKP's 1H16 discounting efforts were mostly driven by FX headwinds in various emerging market economies, as well as some product bundling as an incentive to grow its vast installed base."

2) Software blades continue to grow as a percent of revenues (~22%), driven most notably by the ATP Sandblast blade."

3) Demand for CHKP's addressable market (Next-Gen Threat Prevention) remains healthy as refresh cycles appear normal (about 15-20% of installed base every year) and as customers continue to require higher throughput in perimeter defense solutions."

4) CHKP's pristine balance sheet of $3.7B cash (~$22 cash/share) provides it with the flexibility to assess various capital allocation programs, although NT focus remains on buybacks/M&A (mostly tuck-ins)."

At time of writing, shares of Check Point Software were down 0.21 percent to $75.16.