CHKP Stock Forecast & Price Target

Check Point Software Technologies has demonstrated a strong growth trajectory, with deal registrations increasing by 30% in the previous year, indicating a solid foundation for future performance in 2025. The company's email security revenue has surged sixfold since the acquisition of Avanan in 2021, underscoring its bold vision to potentially double the number of email boxes under management. Furthermore, the expectation of returning to double-digit revenue growth for the first time since 2011, coupled with improved organizational changes and margins under new leadership, enhances the positive outlook for the company's stock.

The negative outlook on Check Point Software's stock is primarily driven by a forecast of significantly reduced earnings growth, with estimates projecting only 3% EPS growth in CY/25, which reflects a decline of 500 basis points from current expectations. Contributing factors include potential decreases in bookings, a slowdown in software subscription sales, and a lack of traction from new product launches, alongside risks related to macroeconomic uncertainties and a decline in product license revenue. Additionally, there is concern regarding a competitive shift toward next-generation functionality, which suggests Check Point may not have the appropriate product offerings to meet evolving market demands.