)with an investment rating of buy because its dominant position within network security and high value-added business model suggest superior long-term financial performance.
Check Point shares fell 4-3/8, to 139 ? after Raker's report.
Raker believes network security spending will continue to increase despite a tough overall information technology market. He thinks the company, which specializes in Internet security, has one of the "best value characteristics" anywhere and makes excellent use of its capital.
Raker expects earnings per share for 2000 to come in at $1.17 and 2001 EPS to be $1.78. He thinks the company's perceived high valuation may be conservative based on its capital efficiency. Raker says the stock should achieve 25 percent appreciation and hit his $175 per share target, which he considers conservative.