Oppenheimer: CHKP Should Buy Back Shares More Aggressively

In a report released on Sunday, Oppenheimer says that Check Point Software Technologies (NASDAQ: CHKP) reported record 4Q10 results last week, “and it continues to witness strong uptake and growth for its appliances and software blades.”

“Riches usually come hand in hand with success and CHKP's cash balance has passed the $2.4B level or $11.26/share (25% of market cap),” Oppenheimer writes. “Given: 1) strong cash flow generation ($682M in 2010); 2) no sizable acquisitions in sight requiring above $1B (in our view).

“3) Continued focus on small tuck-in technology acquisitions that will be converted into blades, we believe CHKP could and should be buying back shares more aggressively.”

Check Point Software Technologies closed Friday at $45.61.