Saturday, November 22, 2008

Check Point Software shares edge higher

Shares of Check Point Software Technologies Ltd. edged higher Thursday, helped by an analyst report predicting the Internet security software company will fare better than its competitors in a weakened economy.

Morgan Keegan analyst Brian Freed reiterated his "Outperform" rating on the stock. He noted that about 60 percent of Check Point's revenue comes from recurring business than returns on large capital expenditures.

Meanwhile, spending on software security remains a high priority, Freed said.

He told investors in a note that Check Point is not immune to the downturn, "but we do believe the company is better off than its peers."

He added that trends in the quarter to date "indicate that the company is generally tracking a level consistent with guidance. While it is still early in the quarter and December will be critical, the initial signs look positive."

Check Point's stock rose 43 cents, or 2.3 percent, to $18.87 in afternoon trading.

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