Check Point Software: Recent Acquisitions Should Improve Growth

Yesterday, Credit Suisse’s Paul Winslow upgraded Check Point Software (CHKP) to Outperform from Neutral, and increased his price target to $27, from $22.50.

Winslow says he has been cautious on the stock in recent years over concern about the long-term growth prospects of the company’s core firewall and VPN business, and an apparent lack of strategic plan to recharge growth. But Winslow now says that recent acquisitions of Protect Data and NFR Security “provide Check Point with an improved product set to better grow outside of the firewall/VPN market, which should improve the forward growth profile of the company.”

Winslow says buying the two acquired companies “should re-instill growth into the company’s business model and provide new products for Check Point’s channel to sell.”

Check Point was up 70 cents yesterday at $24.08.

CHKP 1-yr chart