BofA raised its price target for Check Point Software Technology (NASDAQ:CHKP) to $160 from $140 per share, reiterating in a Buy rating in a note Friday.
Analysts told investors that they see promising trends for the company alongside a "solid strategy."
"Approximately 42% of Check Point’s revenue is Subscription-based, up 15% YoY in the most recent quarter, with solid contribution from new product pillars such as CloudGuard, Harmony, and Infinity," the analysts noted.
"The company recently acquired Perimeter 81 to enter the SASE (Secure Access Service Edge) market and while we note the company is late to
market, we highlight its solid strategy of leveraging its appliance installed based, opening upsell opportunities within its 100,000-customer base and the 3,000 new customers added through the acquisition," they added.
The analysts also believe the company's new initiatives will drive growth over time: "With the stock underperforming most of its security peers over the last few years, we think that success with the company’s growth initiatives could drive share price appreciation, which is the basis for our positive stance," they wrote.