CHKP Stock Forecast & Price Target

Check Point Software Technologies has demonstrated significant growth in deal registrations, which increased by 30% last year, suggesting strong momentum that management believes can be replicated in 2025. The remarkable rise in email security revenue, which expanded sixfold since the acquisition of Avanan in 2021, indicates a robust product offering with substantial market potential. Additionally, the company is optimistic about achieving long-term growth and improved margins under new leadership, which could facilitate a return to double-digit revenue growth not seen since 2011.

The financial outlook for Check Point Software Technologies depicts significant challenges, with a downside scenario forecasting limited earnings per share (EPS) growth of only 3% by calendar year 2025, a drop of 500 basis points compared to current estimates. Contributing to this negative outlook are factors such as a decline in product license revenue, macroeconomic uncertainties, and a competitive shift in the market favoring next-generation cybersecurity functionalities, which Check Point may not adequately address with its current product offerings. Additionally, potential risks associated with decreased bookings, slower software subscription sales, and reduced share repurchase activity further compound concerns about the company's growth trajectory.