Check Point Knocked Down

Check Point Software (CHKP Quote - Cramer on CHKP - Stock Picks) was dropping 2.6% early Friday after a Wall Street research firm cut its rating on the stock.

Friedman Billings Ramsey downgraded Check Point to underperform from market-perform but kept its $19 price target. FBR said 2007 will probably be a major transition year for Check Point, as the company is facing increasing competition, including that from Microsoft (MSFT Quote - Cramer on MSFT - Stock Picks).

At the same time, Check Point is trying to integrate a newer growth product into its offerings. Check Point was losing 62 cents to $23.01 in premarket trading.