On Thursday, Truist Securities maintained its positive stance on Checkpoint Software (NASDAQ:CHKP) shares, reiterating a Buy rating with a price target of $250.00. The endorsement follows Checkpoint’s announcement of first-quarter earnings for fiscal year 2025, which surpassed consensus expectations, primarily due to a recovery in product revenue. According to InvestingPro data, 13 analysts have recently revised their earnings estimates upward, with price targets ranging from $160 to $285. The company’s Quantum Force appliances have been gaining market acceptance, contributing to the revenue growth, which reached $2.6 billion in the last twelve months.
Checkpoint Software also reported continued double-digit growth, with expectations of further gains from a strategic focus on Secure Access Service Edge (SASE) and Artificial Intelligence (AI) technologies. The company’s strong market position is reflected in its impressive gross profit margin of 88.26% and healthy return on equity of 31%. Despite a conservative outlook for the second quarter of 2025, Checkpoint has maintained its full-year guidance. The conservative stance is attributed to the potential impacts of tariffs, although the company clarified that such impacts have not yet been observed.
In its financial report, Checkpoint emphasized that global security spending is anticipated to remain strong, suggesting a resilient market for their products. Truist Securities’ analyst commented on the results, noting the solid start to the fiscal year and expressing confidence in the company’s performance and strategy moving forward.
The firm adjusted its estimates for Checkpoint Software based on the latest financial data and market trends. The reiterated Buy rating and price target reflect Truist Securities’ expectation that Checkpoint Software will continue to perform well and that its stock is a worthwhile investment. The security software provider’s focus on innovation and growth areas such as SASE and AI appears to be paying off, positioning it favorably in a competitive industry.
In other recent news, Check Point Software reported first-quarter earnings and revenue that surpassed analyst expectations. The company posted adjusted earnings per share of $2.21, slightly ahead of the consensus estimate of $2.19. Revenue increased by 7% year-over-year to $638 million, exceeding the anticipated $636.22 million. Product and license revenue saw a significant rise of 14%, reaching $114.1 million, while security subscription revenue climbed 10% to $290.6 million. Check Point’s cash flow from operations also grew by 17% year-over-year to $421 million, with calculated billings up 7% to $553 million and remaining performance obligations increasing by 11% to $2.4 billion.
In analyst updates, Raymond James maintained its Outperform rating with a price target of $240, citing strong growth trends and stable forward guidance. Stephens adjusted its price target for Check Point Software to $229 from $255, while maintaining an Equal Weight rating. The firm noted solid first-quarter results but expressed caution due to current economic uncertainties. Raymond James also highlighted Check Point’s international market share growth and a positive shift in company culture under new leadership. The company’s nearly $3 billion in available funds could potentially be used for growth in targeted areas.
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