Research

Broker recommended

Outperform - Price 17.51 on Oct. 28
by Pacific Crest

Security spending remains a priority amid a tough macroeconomic environment; CHKP is demonstrating solid execution...with its appliance strategy. With its solid balance sheet of no debt and nearly $6.50 a share in cash, we believe the stock has room to appreciate....Target: 30. Market cap: $3.8 billion.

The stock has a PE of 18 and a PEG of 1.45

Check Point Software Technologies Ltd., one of the world's largest Internet security companies, said its board approved the repurchase of up to an additional $400 million of its common stock.

The share repurchase will be funded from available working capital, the company said in a statement.

The stock trades for 12x cash flow.

Check Point Software Technologies Ltd., one of the world's largest Internet security companies, said its board approved the repurchase of up to an additional $400 million of its common stock.

The share repurchase will be funded from available working capital, the company said in a statement.

The stock trades for 12x cash flow.

Citigroup analyst Brent Thill went through a similar exercise last week and came up with some other M&A possibilities in software -- Informatica (INFA), Tibco (TIBX) and BladeLogic (BLOG). Other potential targets, he says, include Check Point Software Technologies (CHKP), THQ (THQI) and Nuance (NUAN).

Security software seems to be at less risk because it isn't viewed as a discretionary purchase. So, McAfee (MFE), Checkpoint (CHKP) and WebSense (WBSN) are less vulnerable to corporate spending constraints, Pritchard says

growing revenues low stock price

Best pure play security company. Solid fundamentals. Large stock buy back in place.

Bought @ $98 in 2000 sold below $20 in 2002. Ouch!