Austrian investment bank CA IB today upgraded Check Point (Nasdaq: CHKP) to “Buy” from “Hold” due to regained confidence the Internet security company would meet analysts’ estimates.
Analyst Martin Masar raised his price target to $21.20 from $15.20, saying the new target would bring Check Point’s valuation in line with its competitors. “We see Check Point undervalued by 29% at current levels,” Masar said.
The analyst said Check Point’s announcement yesterday of a first quarter conference call on April 15 meant it was likely the company would reach guidance for the quarter. The guidance is for revenue of $104-106 million and EPS of $0.24.
“We believe that management has regained its previously lost credibility by delivering on its guidance in two sequential quarters - the fourth quarter 2002 and first the first quarter 2003,” Masar said.
“We are increasing our sales estimates from $431 million to $445 million. Our new EPS estimate is $1.00, up by approximately 10% from our previous estimate of $0.92,” Masar added.
Check Point shares were up 0.5% at $15.21 in early trading on Nasdaq on Thursday.
Published by Globes [online] - www.globes.co.il - on 3 April, 2003