TD Cowen continues to endorse Check Point Software (NASDAQ:CHKP) with a Buy rating, assigning a price target of $285.00, which indicates substantial upside from the current trading level of $178.16. The stock has recently declined by nearly 4%, nearing the 52-week low of $173.77.
The research team at TD Cowen anticipates sustained growth in the closing weeks of the fourth quarter. This optimism is anchored in the persistent firewall refresh cycle and a heightened adoption rate of the firm's Harmony Email and SASE cybersecurity solutions. These factors are expected to underpin Check Point's sales momentum moving into the next fiscal year.
Further bolstering the outlook is Check Point's recent restructuring of its go-to-market strategy. TD Cowen believes this overhaul will contribute positively to revenue growth and customer engagement effectiveness. Financial metrics also reinforce the company’s solid positioning; with gross profit margins reported at an impressive 87.97% and a PEG ratio of 0.77, there are indications that Check Point may be undervalued relative to its growth potential.
Additionally, data from TD Cowen's 2026 cybersecurity survey points to a rising budget focus on network security. This trend supports optimistic fiscal year 2026 forecasts for Check Point, aligning with broader industry spending patterns.
The firm also praises Check Point's defensive qualities amid the current market environment. The company's low beta of 0.59 suggests it experiences less volatility than the overall market, offering a relatively stable investment profile. For investors seeking deeper insights, InvestingPro provides access to extensive analyses, including over 10 ProTips and detailed valuations on numerous U.S. equities.
On the product innovation front, Check Point has launched Exposure Management, a cybersecurity platform designed to combat AI-driven threats. This platform integrates comprehensive threat intelligence and real-time monitoring to prioritize risks and automate vulnerability fixes. Complementing this is the release of Quantum Firewall Software R82.10, which introduces 20 new features aimed at enhancing AI integration and strengthening security across distributed networks with an emphasis on a prevention-first approach.
Analyst activity around Check Point reflects diverse viewpoints. Stephens upgraded the stock to Overweight, adjusting the price target to $240.00 due to improved growth expectation, whereas Truist Securities retained its Buy rating but lowered the target to $225.00, citing the company's strong profitability and expansion potential through platform developments. These perspectives highlight a nuanced consensus on the company’s trajectory.