Check Point Delivers Steady Q3 as Growth Slightly Picks Up; Maintaining $132 FVE

We are maintaining our $132 fair value estimate for narrow-moat Check Point Software Technologies after its third-quarter results came in lower than our expectations for revenue, but higher for earnings. As with previous quarters, we frame the results as solid and steady, but Check Point’s growth continues to lag its peers in a high-demand environment for cybersecurity. However, we see positive signs in Check Point’s billings growth accelerating faster than revenue growth and the company ramping up its hiring. We view shares as slightly undervalued and expect Check Point to continue being a growth laggard, but steady company for long-term investors.