Check Point Software: Downgrade To Hold On High Valuation And Near-Term Concerns
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Check Point Software has been downgraded to 'Hold' due to concerns over high valuation, decelerating subscription growth, and margin pressures. Despite strong billings and product revenue growth, the company's forward PE is considered high at 21x.
February 06, 2025 | 6:15 am
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Check Point Software has been downgraded to 'Hold' due to high valuation, slowing subscription growth, and margin pressures. Despite strong billings and product revenue growth, concerns over a 21x forward PE and a decline in EBIT margin are noted.
The downgrade to 'Hold' reflects concerns over Check Point Software's high valuation at 21x forward PE, decelerating subscription growth, and a decline in EBIT margin. These factors suggest potential short-term downward pressure on the stock price.
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