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Check Point Software Technologies Ltd CHKP

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Check Point Posts Solid Q1 as Security Subscription Growth Accelerates; Maintaining $132 FVE

Mark Cash Senior Equity Analyst

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.

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Company Profile

Business Description

Check Point Software Technologies is a pure-play cybersecurity vendor. The company offers solutions for network, endpoint, cloud, and mobile security in addition to security management. Check Point, a software specialist, sells to enterprises, businesses, and consumers. At the end of 2020, 45% of its revenue was from the Americas, 43% from Europe, and 12% from Asia-Pacific, Middle East, and Africa. The firm, based in Tel Aviv, Israel, was founded in 1993 and has about 5,000 employees.

Contact
5 Shlomo Kaplan Street
Tel Aviv, 6789159, Israel
T +972 37534555
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type —
Employees 5,198

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