Saturday, July 27, 2019

Check Point Going Nowhere Fast

It is an oversimplification to say that software investors care only about growth, but growth is nevertheless a key driver of multiples. Check Point (CHKP) may be working hard behind the scenes, but the reality is that the company continues to lag rivals like Palo Alto (PANW), Fortinet (FTNT), and Cisco (CSCO) when it comes to revenue and billings, and it’s hard to see any meaningful reacceleration on the horizon.

The good news, if you want to call it that, is that I don’t think there are many investors interested in Check Point who expect a lot of growth out of the company. If the different billing cycle for Infinity is in fact obscuring underlying growth and this security as a service platform can catch on with more larger clients, Check Point could outperform. I’m not sold on the strategy though, and I continue to believe that Check Point has been surpassed by some of its rivals. The prospective return is getting more interesting, but isn’t high enough to coax me to take the risk.

Read the full article here:
Check Point Going Nowhere Fast

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