Check Point upgraded at William Blair on new opportunities and valuation By Investing.com

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<span>© Reuters. Check Point (CHKP) upgraded at William Blair on new opportunities and valuation</span><br />
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<p>William Blair has upgraded its rating on Check Point Software Technologies (NASDAQ:) to ‘Outperform’ from ‘Market Perform’ on a valuation gap relative to peers and their belief that the stock can reach an inflection point in 2024.</p>
<p>Check Point stands to benefit from prior Infinity deals signed, new opportunities based on its consolidated platform story, and the launch of new firewall products, noted William Blair.</p>
<p>“In our view, investors looking for a highly profitable business that has been written off by many investors may want to reconsider the story,” wrote analysts in a note to clients Wednesday.</p>
<p>“In particular, we believe the risk/reward has become more attractive given the recent run-up in the cybersecurity space and the downside protection offered by the company’s high degree of profitability and large cash balance.”</p>
<p>Analysts pointed out that expectations appear low with the company still working on striking a balance between stabilizing its product business and delivering growth in subscription services/ Infinity.</p>
<p>The valuation gap relative to competitors is another reason for the upgrade. Check Point trades at about 6 times revenue and about 18 times free cash flow, while Palo Alto Networks and Fortinet trade at less than 12.5 and less than 9 times revenue, respectively.</p>
<p>“We continue to believe Check Point has a real opportunity to enhance its market position through successfully delivering its go-to-market functions and messaging,” they added.</p>
<p>CHKP stock is trading flat in the premarket session Wednesday at $160.31.</p>
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<br /><a href="https://www.investing.com/news/stock-market-news/check-point-upgraded-at-william-blair-on-new-opportunities-and-valuation-432SI-3288428">Source link </a></p><p>The post <a href="https://forextraderhub.com/check-point-upgraded-at-william-blair-on-new-opportunities-and-valuation-by-investing-com.html">Check Point upgraded at William Blair on new opportunities and valuation By Investing.com</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>