Morgan Stanley Maintains Equal-Weight Rating on Check Point Software, PT Down to $215

Morgan Stanley Maintains Equal-Weight Rating on Check Point Software, PT Down to $215

Morgan Stanley has revised its price target for Check Point Software Technologies Ltd. (CHKP), lowering it from $230 to $215 while maintaining an equal-weight rating. The update comes following the company's Q2 2025 earnings report, which showed robust growth and strong performance in key areas.

Check Point Software Technologies reported non-GAAP earnings per share (EPS) of $2.37, meeting expectations of $2.36. Revenue for the second quarter was $665.2 million, a 6% increase year-over-year, surpassing FactSet estimates of $661.7 million. The company's earnings call highlighted several key initiatives, including the expansion of its Quantum Force AI-powered firewalls and the acquisition of Veriti, which enhances its threat intelligence and real-time remediation capabilities [2].

The analyst at Morgan Stanley noted that while the company's financial results were strong, the market's reaction to the earnings report was muted. The firm cited concerns about the company's ability to maintain its growth momentum and the competitive landscape in the cybersecurity sector. However, Morgan Stanley believes that Check Point's strategic initiatives and strong market position will continue to drive growth in the coming quarters.

Check Point Software Technologies has been proactive in expanding its offerings and strengthening its market position. The company recently opened a new R&D center in India and has doubled its SASE R&D team, contributing to steady growth across all regions. Additionally, the company's inclusion in the 2025 Gartner Magic Quadrant for SASE and recognition as a leader in the Forrester Wave for Zero Trust Platforms underscores its leadership in the cybersecurity industry [1].

Despite the price target adjustment, Morgan Stanley remains optimistic about Check Point's long-term prospects. The firm believes that the company's focus on securing the modern connectivity fabric, prevention-first ethos, open platform philosophy, and AI-first security will continue to position it as a leader in the cybersecurity sector.

References:
[1] https://www.marketscreener.com/news/morgan-stanley-lowers-price-target-on-check-point-software-technologies-to-215-from-230-keeps-equ-ce7c5fddd889f12d
[2] https://www.insidermonkey.com/blog/check-point-software-technologies-ltd-nasdaqchkp-q2-2025-earnings-call-transcript-1580391/