Check Point Software Technologies (CHKP) is adding new customers at a faster rate, said an analyst who upgraded the cybersecurity stock to outperform on Friday. CHKP stock gained and moved into a buy zone.
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“Our recent channel checks suggest strong near-term demand in both emerging subscription-based technology and net new customer growth (not just renewals),” Raymond James analyst Adam Tindle said in a note to clients.
He added: “We also picked up an intention for a mid/high-single digit price increase likely to phase in during the first half of 2022.”
CHKP stock gained 6.3% to 126.94 in morning trading on the stock market today. Check Point stock moved into a 5% buy zone, above an entry point of 124.46.
CHKP stock had forged a double-bottom base.
CHKP Stock Competes In Firewall Market
A rival of Fortinet (FTNT) and Palo Alto Networks (PANW), Check Point competes in the cybersecurity network firewall market. Firewalls protect computer networks by blocking online intrusions and monitoring web-based apps. But firewall revenue growth has slowed as customers shift to cloud computing platforms.
The IBD Computer-Software Security group ranks No. 80 out of 197 industry groups tracked. Check Point stock holds a Relative Strength Rating of only 41 out of a possible 99, according to IBD Stock Checkup.
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IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists for issues such as CHKP stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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Read More: CHKP Stock Pops On Upgrade As New Customer Growth Picks Up