Check Point Software upgraded to Buy as subscription growth rebounds to 12% y/y with new AI products.

Check Point Software Technologies Ltd. (CHKP) has been upgraded to a Buy rating due to accelerating subscription growth of 12% year-over-year, reversing previous softness in recurring revenue. The company’s new AI Network Firewall and Verity products are expected to maintain this momentum and drive future growth in recurring revenue. Although product revenue declined 14% year-over-year, easier comparisons in the second half and restructuring efforts are expected to support recovery. Trading at 12 times next twelve months price-to-earnings, CHKP is valued below peers and historical averages, suggesting potential for significant multiple expansion if growth continues to accelerate.