Check Point Software (NASDAQ:CHKP) Share Repurchases Should Accelerate on Tax Law Changes

Changes in Israeli tax laws should see Check Point Software (NASDAQ:CHKP) accelerating their repurchase of company shares on a quarterly basis, according to Jefferies (NYSE:JEF).

Jefferies noted, "the announcement of a significant boost to the amount of the authorized buyback could be the first indication of management's intention to act. Check Point currently has >$2.2Bn in cash on hand, nearly $11 per share."

Even before the change in Israeli tax laws, Check Point Software (NASDAQ:CHKP) has been buying back shares at a quarterly rate on average of $65 million, using 70 percent of its quarterly cash flow for the acquisitions.

For 2011, Jefferies said Check Point should generate approximately $200 million in revenue, and continuing to grow in the future.

Jefferies maintains a "Buy" rating on Check Point Software, which closed Tuesday at $46.35, gaining $0.15, or 0.32 percent. Jefferies boosted their price target on Check Point from $47 to $52.