October 02, 2012–Check Point Software Technologies Ltd. (CHKP) slid the most in a month as RBC Capital Markets cut its price target for the world’s second largest network security maker by 18 percent amid increased competition.
The Israeli technology developer dropped the most since Aug. 30 in New York yesterday, after posting a 4.5 percent advance in September, the first monthly gain in six months. Check Point led the Bloomberg Israel-U.S. equity index of the most traded Israeli companies in New York down 1 percent to 85.85. Allot Communications Ltd. (ALLT), the Israeli developer of network traffic management technology, was the biggest decliner on the index. The TA-25 Index gained 2.3 percent at the close in Tel Aviv today after trading resumed after a two-day holiday.
Check Point is falling as stocks on Israel’s benchmark TA-25 Index completed their best quarter in two years. RBC reduced its 12-month price estimate for the Tel Aviv-based company yesterday and downgraded it to the equivalent of hold from outperform. More competition from Santa Clara, California- based Palo Alto Networks Inc. (PANW), as well as new rivals F5 Networks Inc. (FFIV) and Sourcefire Inc. (FIRE), will force Check Point to offer more discounts, RBC analyst Robert Breza wrote in his report.
“The company needs to reprove itself among investors that there is potential for reacceleration of growth,” Daniel Ives, an analyst at FBR Capital Markets & Co. that rates Check Point buy, said by phone in New York yesterday. “Check Point is in the investor penalty box and they have to show a good second half performance in order to get incremental investors to focus back on them again.”…Read More>>