Piper Jaffray keeps its outperform rating on Check Point Software (CHKP).
Analyst Gene Munster says Check Point posted a $9.8 million sequential increase in deferred revenues, which followed a $7 million sequential increase in deferred revenues in the December quarter. He notes the latest results represented the single biggest rise in deferred revenues since December, 2002.
Munster thinks the deferred revenue increases over the last two quarters represent a positive fundamental shift in demand for Check Point's products, software subscriptions, and services. He tweaked the $1.02 2004 earnings per share estimate to $1.03, and is keeping the $1.07 2005 estimate. He increased the $515.3 million 2004 revenue estimate to $518.3 million, and maintains the $555.1 million 2005 estimate. He has a $27 target.