Gleacher & Co. initiated coverage on Check Point Software Technologies Ltd. (CHKP) with a 'buy' rating and price target of $55 on potential benefits from growing network security market and the company's software blade platform.

Tel Aviv-based Check Point's products verify remote users, control access, and block viruses. The company also offers products that enable companies to set up virtual private networks for secure internal and remote communications.

The brokerage believes that the $8 billion network security market will continue to grow at an 8-10 percent compounded annual growth rate driven by increasing regulatory measures and increasingly sophisticated cyber attacks.

Gleacher said network security spending will gain share in IT budgets, and the company's transition to an appliance model still has plenty of legs.

The brokerage added that the Check Point's Software Blade platform positions it to take share in a fragmented industry with many point vendors. Recently, Check Point announced its new Application Control Software Blade that enables organizations to secure and manage the use of thousands of Web 2.0 applications in the enterprise.

The new blade integrates Check Point's UserCheck technology to engage employees in the decision-making process and enables IT administrators to tailor application usage policies.

The brokerage noted that as customers migrate to the platform over the next 1-3 years and purchase additional security capabilities, it sees a $160 million revenue and 40 cents incremental EPS opportunity that is largely not reflected in Street estimates.

Shares of Check Point closed Monday's regular trading session at $44.63 on Nasdaq.