William Blair analysts upgraded Checkpoint Software (NASDAQ:CHKP) from Market Perform to Outperform. The analysts explained the upgrade by highlighting their belief that Checkpoint Software is approaching a crucial inflection point in 2024 and currently holds a substantial valuation gap compared to its peers, notably Palo Alto Networks.
The analysts anticipate that Checkpoint will benefit from its previous Infinity deals, new opportunities arising from its consolidated platform approach, and the launch of new firewall products.
Despite their fourth-quarter assessments being broadly in line with previous periods, the analysts noted increased positive feedback regarding Checkpoint’s channel engagement and the early pipeline development for 2024.
They believe that investors should reconsider Checkpoint, seeing it as a highly profitable business that has been overlooked by many. The attractive risk/reward balance, particularly in the context of the recent surge in the cybersecurity sector, and the downside protection provided by the company’s profitability and substantial cash reserves are key factors in his upgraded outlook.