Almost every single day, we hear something about a security breach. Recently it was the U.S. government getting hacked and thousands of names and information stolen. Enterprise and network security is probably the current highest priority in our nation. Deutsche Bank recently attended the Gartner Security event, and from their discussions concluded that spending will continue is a big way.
The Deutsche Bank team said in a new research note that they did not talk to a single source at the event, be it a customer, vendor or a Gartner analyst, that mentioned any planned slowdown in enterprise spending on security information technology in 2015. In fact, Gartner analysts, resellers and customers seemed to all agree that firewall spending growth is likely to accelerate in 2015, and replacement cycles are far shorter as vendors attach new add-on functionality.
The Deutsche Bank analysts have three top picks in the arena that they recommend and that are rated Buy at the firm.
Check Point Software Technologies
This company remains one of the top tech stocks to buy on Wall Street for a security presence. Check Point Software Technologies Ltd. (NASDAQ: CHKP) is one of the best in helping customers protect against advanced persistent threats, or APTs. Check Point is considered a worldwide leader in securing the Internet, providing customers with uncompromised protection against all types of threats, reducing security complexity and lowering the total cost of ownership. Check Point first pioneered the industry with FireWall-1 and its patented stateful inspection technology.
Deutsche Bank points out in the report that the company’s revenue growth rate has accelerated almost every quarter over the past year and a half. Many on Wall Street think that Check Point should see accelerating year-over-year growth in product licenses, particularly as the security firewall refresh that appears to be in the beginning stages.
The Deutsche Bank price target for the stock is $95. The Thomson/First Call consensus price target is $91.40. The stock closed most recently at $84.77.
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