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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