Morgan Keegan Increases Rating On Check Point To Outperform

According to Morgan Keegan, Check Point Software Technologies CHKP announced 2Q11 results with revenue and EPS of $300 million (+15% Y/Y) and $0.68 ahead of consensus estimates for $295 million and $0.66, respectively. Morgan Keegan said that deferred revenue growth in 2Q11 increased 10% Y/Y to $456 million, while billings grew 16% Y/Y. “We are raising our rating on shares of CHKP to Outperform as we believe that the company will continue to benefit disproportionately from an increasing cybersecurity threat environment coupled with an ongoing legacy firewall refresh cycle and a broadening product portfolio.” Check Point Software Technologies closed yesterday at $61.17.