Another Dowgrade for Check Point

Oppenheimer & Co. cut its rating on Check Point(CHKP Quote - Cramer on CHKP - Stock Picks) Wednesday, saying the Internet security provider's new products aren't finding traction. It's the fourth time the company has been downgraded since October.

The stock has had a tough year, losing about 15% of its value before the downgrade. In recent trading, the shares were off another 60 cents, or nearly 3%, to $20.39.

Analyst William Becklean said he expects strong end-year renewals for Check Point's core products, but he noted that customers have been slow to adopt newer offerings, some of which have been on the market for almost a year.

The $225 million acquisition of privately held Sourcefire, which is expected to close in early 2006, will improve Check Point's product line, but Becklean, who lowered his rating to neutral from buy, doesn't expect it to make a substantial contribution to revenue until 2007. Oppenheimer does not have an investment-banking relationship with Check Point.

Analysts from Wedbush Morgan, Jefferies and Prudential Securities have downgraded Check Point to hold or neutral since October.