SG Cowen Cuts Check Point to Neutral
SG Cowen downgraded Check Point Software Technologies (CHKP) to neutral from outperform, after news late Thursday that Check Point's planned acquisition of Sourcefire isn't going to happen.
Analyst Walter Pritchard says that Check Point stock remains cheap, but he had expected Sourcefire to be central for its forward strategy. He's certain Sourcefire executives were earmarked for management roles within Check Point. He thinks it will take Check Point a couple of quarters to regroup. He says the strategic fit was sound, but unfortunately protectionist politics kept Check Point (an Israeli company) from buying Sourcefire (a US company that sold into the federal government.) He notes that Check Point was in need of a boost to its internal network security strategy.