Check Point: Initiating Coverage With Narrow Moat Rating and Fair Value of $150; Shares Undervalued

We are initiating coverage on Check Point Software Technologies with a narrow moat rating and $150 fair value estimate. Our fair value estimate is equivalent to a P/E multiple of 19 times, slightly above its historical average. We are slightly below FactSet consensus on our near-term estimates, yet our fair value estimate is higher than the stock price and consensus sell-side target price. We surmise that we are more optimistic than the market on the success of Check Point’s Infinity cybersecurity platform. Consequently, at current levels the shares look undervalued with a 4-star rating.