- On Monday, Check Point Software Technologies Ltd CHKP reported first-quarter FY23 revenue growth of 4% year-on-year to $566.2 million, missing the consensus of $568.9 million. Adjusted EPS of $1.80 beat the consensus of $1.74.
- Mizuho analyst Gregg Moskowitz maintained Check Point with a Neutral and lowered the price target from $135 to $130.
- The revenue miss was driven entirely by subpar product activity, as product revenue declined 7% Y/Y, significantly below the Street and the analyst's growth target.
- CHKP provided a generally uninspiring top-line outlook for 2Q but reiterated full-year guidance.
- In addition to a more challenging macro backdrop, the analyst believes CHKP continues to surrender market share and that the company may continue to struggle until the operating environment significantly eases.
- RBC Capital analyst Matthew Hedberg maintains Check Point with a Sector Perform, lowering the price target from $135 to $132.
- Results were mixed with good profitability but underperformance on billings and revenue, primarily driven by a weaker product revenue while subscriptions remained solid.
- The analyst remains cautious in the near term, with the potential for upside to growth and margins more likely in the second half of FY23 aided by ramping sales productivity and a building pipeline.
- Credit Suisse analyst Sami Badri maintains Check Point Software an Underperform, lowering the price target from $115 to $105.
- The analyst believes a meaningful inflection in product revenue and multi-year billings growth will be the key to improving the CHKP narrative and await this inflection before getting more constructive.
- Price Actions: CHKP shares traded higher by 2.29% at $121.24 on the last check Tuesday.
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