Citi Places Negative Catalyst Watch on Check Point (CHKP) and Varonis (VRNS)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: seekingalpha
- Expense Model Concerns: Citi analyst Fatima Boolani highlighted that the market is underestimating Check Point's expenses for 2026, with operating margins projected around 40%, which could negatively impact the company's future profitability.
- Convertible Debt Impact: The issuance of $2 billion in convertible debt by Check Point may indicate the likelihood of significant future M&A, which could further dilute shareholder value and heighten concerns about its financial health.
- Increased Competition Risks: For Varonis, Boolani noted that the company checks several boxes as a potential acquisition candidate, but growing competition in the data security space may lead buyers to pause their acquisition intentions, affecting future revenue growth.
- Rapid7 Downgrade: Citi downgraded Rapid7 from Buy to Neutral, believing the current risk-reward profile is balanced, with expectations for low-single-digit revenue growth and limited overall profitability upside due to competitive pressures.
Analyst Views on CHKP
Wall Street analysts forecast CHKP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CHKP is 231.35 USD with a low forecast of 200.00 USD and a high forecast of 285.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
25 Analyst Rating
10 Buy
15 Hold
0 Sell
Moderate Buy
Current: 188.540
Low
200.00
Averages
231.35
High
285.00
Current: 188.540
Low
200.00
Averages
231.35
High
285.00
About CHKP
Check Point Software Technologies Ltd is an Israel-based company primarily engaged in the cybersecurity industry. The Company focuses on providing AI-powered, cloud-delivered security solutions to protect corporate enterprises and governments worldwide. Their key product is the Check Point Infinity Architecture, which is a comprehensive cybersecurity platform. The Platform aims to defend against fifth-generation cyber-attacks across various networks, endpoints, cloud environments, workloads, Internet of Things (IoT), and mobile devices. Apart of that, the Company offers a range of products and services designed to secure IT infrastructure. It integrates advanced threat prevention technologies, including firewall, intrusion prevention system (IPS), antivirus, anti-bot, and sandboxing capabilities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
