Shares of Check Point Software Technologies Ltd. continued climbing in premarket trading Friday a day after the maker of Internet security software said it is on track to complete the acquisition of Protect Data AB.
Protect Data helps broaden Check Point's portfolio of software guarding computers and networks from hackers, spyware and data theft. With $414 million in 2005 sales, Protect Data makes products encrypting data on computers and cell phones.
Check Point, which booked $579.4 million revenue in 2005, is acquiring Protect Data through a $625 million tender offer.
After rising 3 percent on the Nasdaq Thursday, Check Point's stock gained an additional 28 cents to $23.38 in premarket electronic trading Friday. The stock is poised to open near its 52-week high of $23.48.
RBC Capital Markets analyst Robert Breza upgraded Check Point Software to "Outperform" from "Sector Perform," raising his price target to $32 from $22.
Check Point acquired "an industry leader with the best products on the market," Breza said. With the acquisition, Check Point Software gives its sales force a new bundle of products to pitch to customers, he said.
Breza expects Check Point to launch four new products in 2007, and he thinks the deal will help the company grow at a faster pace with a more diversified product portfolio.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment