Morgan Stanley downgrades Check Point

Check Point Photo: Reuters

Analyst Steve Weiss has also cut the Israeli cybersecurity company's target price by 6% from $115 to $106.

Morgan Stanley has downgraded Israeli cybersecurity company Check Point Software Technologies Ltd. (Nasdaq: CHKP) from Equal Weight to Underweight and cut the price target by 6% from $115 to $106. In response Check point's share price is down 2.06% in pre-market trading on Nasdaq at $110.30, giving a market cap of $17.6 billion.

Morgan Stanley analyst Keith Weiss writes, "Check Point has struggled to maintain pace and market share in recent years and we see no sign of this dynamic changing in 2020."

Weiss explains that his surveys of companies' chief security officers and resellers have found that Check Point is losing market share to rivals Palo Alto Networks and Fortinet. These losses, he adds, have been exacerbated by sales execution challenges and the company is increasing investment in sales and marketing.

Weiss stresses that these problems will restrict revenue growth.

Published by Globes, Israel business news - en.globes.co.il - on January 13, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Check Point Photo: Reuters
Check Point Photo: Reuters
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