CHKP Stock Forecast & Price Target

Check Point Software Technologies has demonstrated strong momentum with a 30% increase in deal registrations, which management believes can be sustained into 2025, indicating robust demand for its cybersecurity solutions. The company has also significantly boosted its email security revenue, achieving a sixfold increase since acquiring Avanan in 2021, with ambitious plans to double the email boxes under management by 2025. Furthermore, improved margins and a higher long-term growth outlook, driven by organizational changes under the new CEO, contribute to a positive financial outlook for the company.

Check Point Software Technologies is facing a negative outlook primarily due to macroeconomic uncertainties that continue to concern investors. The potential for declining product license revenue, coupled with competition shifting toward next-generation functionality, raises questions about the company’s ability to maintain market share. Additionally, there is a risk that Check Point may not possess the appropriate products to address next-generation workloads, leading to a forecasted EPS growth of only 3% by CY/25, which is significantly lower than current estimates.