Check Point Software Technologies (CHKP) Could Be 4% Undervalued As AWS EU Cloud Deal Lands

Why the AWS European Sovereign Cloud partnership matters for Check Point Software Technologies

Check Point Software Technologies (CHKP) has drawn investor attention after becoming a partner for the Amazon Web Services European Sovereign Cloud, putting its Cloud Firewall directly in front of highly regulated EU customers.

This new collaboration centers on security and compliance for European organizations that must keep data and operations within the European Union, including public sector bodies and industries with strict regulatory requirements.

See our latest analysis for Check Point Software Technologies.

The AWS European Sovereign Cloud announcement has arrived at a time when Check Point Software Technologies’ short term momentum is picking up, with a 7 day share price return of 7.86% and a 30 day share price return of 2.25%. However, the share price is still down 23.29% year to date and the 1 year total shareholder return is down 37.72%, while the 3 and 5 year total shareholder returns of 11.49% and 13.37% point to a more moderate long term outcome.

If this kind of cloud security story interests you, it could be a good moment to broaden your watchlist with other AI focused security and infrastructure plays using the 52 AI infrastructure stocks

After a sharp recent move and with Check Point Software Technologies trading below both analyst targets and an estimated intrinsic value, is the market being fairly cautious about its growth profile, or is it overlooking what this AWS tie up could mean?

Most Popular Narrative: 3.8% Undervalued

Check Point Software Technologies is trading at $138.87 compared with a widely followed fair value narrative of $144.32, which frames the recent AWS partnership against expectations for future earnings and profit margins.

The Infinity platform continues to gain traction, with strong double digit revenue growth and increased customer adoption, now accounting for over 15% of total revenue. This supports expectations for revenue growth through enhanced customer retention and cross selling opportunities.

Read the complete narrative.

Want to see why this narrative still supports a higher value for Check Point Software Technologies? It leans on steady revenue expansion, resilient margins and a higher future earnings multiple. Curious which assumptions really carry the fair value story and how they balance slowing profit forecasts with share count reductions? The full breakdown connects those moving pieces into one clear valuation path.

Result: Fair Value of $144.32 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, investors in Check Point Software Technologies still need to weigh execution risks in AI and SASE, as well as potential margin pressure from higher costs or tougher competition.

Find out about the key risks to this Check Point Software Technologies narrative.

Next Steps

With mixed sentiment around Check Point Software Technologies, including both concerns and optimism, it makes sense to move quickly and weigh the evidence for yourself using the 3 key rewards and 1 important warning sign.

Looking for more investment ideas beyond Check Point Software Technologies?

If Check Point Software Technologies has caught your attention, do not stop there. Use these hand picked filters to uncover fresh opportunities before the crowd catches on.

• Target value first by scanning companies that combine quality fundamentals with attractive prices using the 41 high quality undervalued stocks.
• Prioritize resilience and sleep easier at night by focusing on 74 resilient stocks with low risk scores that score well on stability and downside protection.
• Seek out future leaders early by filtering for a screener containing 18 high quality undiscovered gems that most investors are not watching yet.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com