Checkpoint and Varonis Earnings in Focus as Israeli Cyber Stocks Stir Wall Street
Wall Street trading on Friday showed mixed results, with slight gains in the Dow Jones and S&P 500 indices, while the Nasdaq declined. Over Thursday and Friday, leading indices fell between 0.5% and 2.8%. Israeli and Israel-related stocks drew attention amid this volatility.
Checkpoint Software Technologies, led by CEO Nadav Zafrir, saw its shares rise 3.6% on Friday but ended the week down 4.8%. Despite a 16% recovery since late April lows, the stock remains down nearly 30% year-to-date and is valued at $13.3 billion on Nasdaq. Checkpoint is set to release its Q2 financial results next Thursday, with analysts forecasting $675 million in revenue, a modest 1.5% increase year-over-year, and a non-GAAP net profit of $2.45 per share, up from $2.37. Analysts from Cantor Fitzgerald and Jefferies have highlighted challenges in acquiring new enterprise customers and recent sales organization changes, noting the company needs to meet billing expectations to avoid further stock weakness. Jefferies maintains a buy rating with a $160 price target, implying a 22.5% premium.
Varonis Systems, another Israeli cybersecurity firm managed by co-founder Yaki Faitelson, will report Q2 earnings on Tuesday after market close. Expectations are for $177 million in revenue, a 16.3% increase, but a decline in non-GAAP earnings to one cent per share from three cents previously. Varonis, valued at $5.4 billion on Nasdaq, experienced significant stock volatility last year, including a sharp drop after lowering annual guidance in October. The stock has rebounded 127% since April amid takeover rumors involving private equity firms like Blackstone and Thoma Bravo, though no official sale announcement has been made. Among 26 analysts covering Varonis, 18 are positive, with an average price target just 2.6% above current levels. Cantor Fitzgerald recently raised its target from $35 to $55, maintaining an overweight rating.
Global-e, a fintech company specializing in cross-border e-commerce solutions and led by co-founder Amir Schlecht, also saw its stock jump 5% on Friday after prior declines. The company, valued at $6.1 billion on Nasdaq, has risen 31.5% since hitting a yearly low two months ago. Truist Securities upgraded Global-e’s price target from $39 to $41 with a buy recommendation, reflecting a 13.2% premium, citing improved fintech sector performance driven by mergers and acquisitions.
Overall, investors are closely watching these Israeli tech stocks amid broader market uncertainty and shifting investor interest towards emerging AI leaders. Upcoming earnings reports will be critical in shaping sentiment and stock trajectories.
