Check Point Software Technologies upgraded to "outperform"

01/15/07 - RBC Capital Markets

NEW YORK, January 15 (newratings.com) - Analyst Robert Breza of RBC Capital Markets upgrades Check Point Software Technologies Ltd (CHKP) from "sector perform" to "outperform." The target price has been raised from $22 to $32.

In a research note published on January 12, the analyst mentions that the company is expected to generate 3.2% y/y product license growth in FY07, as compared to the expectation of -13.1% for FY06. Newly-acquired PointSec's overall growth is expected to accelerate and its operating margins are expected to improve after the integration with Check Point Software Technologies, the analyst says. Check Point Software Technologies is likely to announce and launch at least four new products in the forthcoming twelve months, RBC Capital Markets adds.