logo
  Join        Login             Stock Quote

Check Point Software (CHKP) PT Lifted To $69 By UBS Securities, 'Buy' Maintained

 April 25, 2012 02:40 PM
 


(By Balaseshan) UBS Securities analyst Brent Thill increased his price target on shares of Check Point Software Technologies Ltd. (NASDAQ:CHKP) to $69 from $68 while maintaining "Buy" rating.

After the company's first quarter results, the brokerage raised its 2012 EPS estimate to $3.21 from $3.20, while lowering its revenue estimate to $1.386 billion from $1.396 billion and its billings growth forecast to 9.5% from 11.8%. The firm reduced its 2013 revenue growth estimate to 10.5% from 11.5%, while maintaining its EPS estimate of $3.57.

Thill said his industry checks remain healthy so he chalks up product miss on Q1 seasonality and on the margin increased competition.

[Related -Check Point Software Technologies Ltd. (NASDAQ:CHKP): What Could Drive Check Point In 2014?]

However CHKP has remained highly innovative so product revenues should accelerate post Q1 blues and ST deferred down 1.1% sequential was in-line with 4-year seasonal down 1.0% so the billings miss came predominately from volatile long-term deferred. CHKP remains a good growth story with the potential to more aggressively distribute cash to shareholders in 2013.

Thill said his fiscal 2012 adjustments include: product revenue post Q1 miss to up 5.5% year-over-year from up 9.5% partially offset by annuity revised to up 15.0% from up 13.9% prior on continued strong annuity software blade sales.

The analyst believes bias is to upside on product revenues. EPS up $0.01 on margins down 20 basis points versus down 100 basis points prior (Q1 margins up 160 basis points versus his model).

[Related -Check Point Software Technologies Ltd (CHKP): What To Watch In Q2 Results?]

Thill said his other key takeaways are Q1 may have been negatively impacted to a degree by customers pausing appliance purchases ahead of GAiA OS (launched last week), pent-up demand could be incremental for fiscal Q2.

Thill said Europe down 17% sequential was weak versus seasonal down 14%, the region remains highly variable by country though the fiscal Q2 forecast looks positive. Blades were on a $200 million run-rate exiting fiscal 2011 and growing 30%-plus year-over-year.

Check Point Software develop technologies to secure communications and transactions over the Internet by enterprises and consumers. Check Point develops, markets and supports a range of software, as well as combined hardware and software products and services for information technology (IT) security.

CHKP is trading up 0.03% at $59.82 on Wednesday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.