Analysts Upbeat On Check Point Software's Future: Price Targets Raised Post Q2 FY23 Results

Several analysts raised the price target of Check Point Software Technologies Ltd CHKP after it reported Q2 FY23 results yesterday. 

The company reported revenue growth of 3% Y/Y to $588.7 million, missing the consensus of $588.9 million. Non-GAAP EPS of $2.00 beat the consensus of $1.89.

For Q3 FY23, the company expects revenues of $570 million - $605 million (consensus: $593.61 million) and non-GAAP EPS of $1.97 - $2.07 (consensus: $1.72). 

For FY23, the company reaffirmed its guidance for revenue at $2.34 billion- $2.51 billion (consensus: $2.42 billion) and non-GAAP EPS at $7.70-$8.30 (consensus: $8.02). 

RBC Capital Markets raised the price target to $138 from $132, maintaining a Sector Perform rating.

RBC analyst Matthew Hedberg raised the adjusted EPS estimate to $8.03 (from $8.00) and $8.75 (from $8.72). 

Retaining a Market Perform rating, BMO Capital Markets upped the price target to $140 from $133.

BMO analyst Keith Bachman revised estimates for revenue and EPS to $2.407 billion (from $2.416 billion) and $8.27 (from $8.25) for 2023, and $2.522 billion (from $2.530 billion), and $9.17 (from $9.05) for 2024, respectively. 

Wedbush increased the price target to $150 from $135 at an Outperform rating.

Wedbush analyst Daniel Ives revised the estimate for revenues to $597.0 million (from $602.9 million) for Q3, $2.419 billion (from $2.420 billion) for 2023, and $2.527 billion (from $2.532 billion) for 2024. 

Also, the analyst updated non-GAAP EPS estimates to $2.02 (from $1.99) for Q3, $8.13 (from $8.11) for 2023, and $8.75 (from $8.78) for 2024. 

At an Equal-Weight rating, Barclays raised the price target to $137 from $127. 

Price Action: CHKP shares are trading higher by 0.10% at $132.24 on the last check Thursday.