Check Point Software Technologies Inc (CHKP)

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Update,

Check Point is progressing well in third quarter, says CIBC
11.9.2005 | 10:56
Omri Cohen

In the first half of 2005, Check Point Software Technologies (NASDAQ:CHKP) proved the skeptics wrong, presenting 16% revenue growth against the same period of 2004 to $282 million. Its net shot up to $152 million, an increase of 44% against January-June 2004.

Yet so far Check Point stock hasn't done much about it: this year it has lost 6%, and is now lodged in the range of $21-23 per share, while its fans among the analyst community think a pair 12-month price target is $25-31.

This week CIBC Israel said it talked with Check Point distributors and says the company is progressing well ahead in this quarter, which ends at the end of September. The analysts, headed by Avivit Mannet-Kalil, say they feel comfortable with a revenue forecast of $146 million for the quarter, up 13% from the parallel quarter of 2004.

CIBC repeated an Outperform rating for the stock and set it a 12-month price target of $30.

On Friday, Deutsche Bank raised its price target for Check Point stock from $26 to $27, saying the data security company is trading at a deep discount compared with peer companies.

Check Point is a central player in the data security sphere, the German investment bank pointed out: its stock is all of 17 times estimated 2006 earnings, whereas the multiple in the sector is 23. The analysts do not see the gap disappearing altogether, but believe it should narrow in the quarters to come, since Check Point is well positioned to beat the forecasts.

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