) coverage is initiated with a Buy rating. Jefferies said that it is initiating coverage with a Buy rating; our $66 price target is based on 21x the CY12 earnings estimate of $3.16 and implies a P/FCF cash valuation of 18x, in-line with the group. “We believe the primary risks include limited margin expansion potential, which is well known but does restrict valuation multiple expansion, and transformational acquisition risk given the company's large cash balance. In the near term, the company is expected to introduce a new line of products which could bring short term sales disruption.” Check Point Software closed yesterday at $56.67.