Check Point: Infinity Could Justify A Spike From $101-$119 To $245

Summary

  • Check Point Software Technologies Ltd. offers three different options to secure the network, the cloud, and the client’s users.
  • I am assuming that the company’s R81 product, which was released in 2020, should successfully find significant demand.
  • I expect that the system will be successful because it offers not only prevention and security management but also autonomous threat prevention and AI-driven security policy systems.
  • I expect sales growth of 7.5% from 2021 to 2025, an EBITDA margin of 55%, and a UFCF margin close to 45%. Notice that 2025 UFCF may stand close to $1.305 billion.
  • I believe that the new AI-driven security policy systems against zero-day attacks would imply a total valuation that could go from $139 to $245.

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In my opinion, the 5th generation of cyber threats needs a new generation of AI-driven security policy systems against zero-day attacks. That’s exactly what Check Point Software Technologies Ltd. (NASDAQ:CHKP) engineered with its new

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I am an financial advisor living in Europe. I conduct due diligence for clients across multiple sectors. I hold more than 15 years of expertise.I only write about my opinion. Investing in securities involves risk of loss that readers should be prepared to bear. No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of CHKP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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