Analsyt Joel Fishbein commented: "After 3 quarters of stagnant stock performance and 4 quarters of disappointing Check Point guidance, we believe it is time to be constructive again in the name." In a previous note, we noticed that we have been looking for incremental evidence We believe that both criteria are now true.
When the company originally started the F18 guidance it implied ~ 5% growth in the top line of the sales force and signs of a minimum in expectations before re-evaluating our perspective. , at that time disappointing investors who expected a re-acceleration or, at least, flat growth after a 6.5% growth in F17.As we look down a 2Q impression with an F18 guideline that now implies a growth of 2 % on the top line, we feel that the -up set is now in favor of Check Point for the remainder of the fiscal year, and our checks indicate that and traction in the sales force ramp and with Infinity Architecture GTM. In short, Check Point is a solid b use with incredible operating margins (~ 53%) and attractive FCF performance (~ 7%) that has been out of date for what has been a great year for the broader cybersecurity sector.
We see potential for the increase in estimates and multiple expansion as the company regains its equilibrium in the coming quarters. We are updating to Buy with a PT of $ 120, which implies 15x EV / F18 FCF ".
