-- Check Point Software Technologies (CHKP) reported disappointing Q1 product growth, and while the company has made changes, it now needs to aggressively position its solutions as customers focus on AI security, Morgan Stanley said Friday.
Check Point believes it has made the changes to its go-to-market strategy in recent months. However, following the appointment of the new chief revenue officer, it remains aware that there may be more disruption ahead, the brokerage said.
Morgan Stanley said it will be monitoring go-to-market changes, progression of AI security, and the impact of price increases on firewall sales heading into Q2 and in the back half of the year.
The brokerage added that it does not see investors returning to Check Point until they are more confident that it can capture growth in firewalls and emerging categories like AI security.
Morgan Stanley maintained an equal weight rating on Check Point Software and lowered the price target to $133 from $197.
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