Check Point Software Technologies Upgraded To Buy At Deutsche Bank

Check Point develops, markets and supports software for information technology security.

Deutsche Bank analyst

expects that security IT will be a strong performing sector once again in 2015. Deutsche Bank notes that Check Point currently trades at around 18 times their projected 2015 non-GAAP earnings per share and only 11.7 times free cash flow predictions. “We view these multiples as attractive given CHKP’s exposure to the fast-growing security segment and its accelerating growth profile,”

.

Deutsche Bank’s upgrade is the latest

on Check Point, but other analysts have recently given their take on the stock as well. In November,

initiated coverage of Check Point by issuing a Buy rating on the stock and setting a price target of $88.00. In October,

also upgraded Check Point from Hold to Buy.

Check Point stock is up 1.3 percent after today, December 17’s upgrade and is currently trading at around $76.30. Deutsche Bank’s $90 price target represents an 18 percent upside for the stock from current levels. Check Point stock has already had an exceptional 2014, The stock is up more than 18 percent year to date.

Check Point’s current price to earnings ratio (P/E) and forward P/E are a reasonable 22.2 and 18.5 respectively. The stock’s price to earnings to growth ratio (PEG) of 2.5 is on the high side, but the company has no significant debt on its balance sheet. Check Point’s projected annual earnings growth rate over the next five years is 8.8 percent.