As noted earlier, Argus analyst Joseph Bonner downgraded Check Point Software Technologies to Hold from Buy after the company lowered its FY18 guidance last month, saying its recent sales execution issues "appear likely to persist over the remainder of the year". The analyst also notes that the company's transition to subscription-based revenue model has shifted more of its reported sales to "deferred revenue". Bonner reduces his FY18 EPS view to $5.66 from $5.83 and lowers FY19 EPS target to $6.31 from $6.54, but adds that he continues to hold a favorable view of the company's underlying security software technology, with focus on "advanced threat protection and mobile services".

Stifel analyst Adam Borg lowered the firm's price target on Check Point to $165 from $170 and keeps a Hold rating on the shares following what the firm calls "a solid print." Q2 guidance brackets consensus while FY24 guidance is reaffirmed, added the analyst, who believes Check Point has a number of drivers to sustain mid-to-high single-digit top-line growth, but also thinks valuation largely reflects this.

Sees Q2 revenue $607M-637M, consensus $623.27M. Comments taken from Q1 earnings conference call.