Analyst Note| Mark Cash |
We are maintaining our $132 fair value estimate for narrow-moat Check Point Software Technologies after the company reported solid first-quarter results. Year-over-year revenue growth of 4% and adjusted earnings of $1.54 were close to our expectations, and our outlook remains stable. Cybersecurity peers may be increasing revenue at multiples higher, but we believe Check Point's sturdy results, stellar operating profile, and opportunity may be overlooked. We view the shares as slightly undervalued and expect Check Point to remain a key vendor in the market through its consolidated approach to network, cloud, and user security.