Check Point's stock price dropped 1.18% to $109.78 after Bank of America Merrill Lynch analyst Tal Liani dropped the rating on the software company's stock to underperform from buy.
The analyst also slashed the target price on Check Point's to $116 a share, down from $130 previously.
In his report, Liani argued that Check Point has been losing market share to competitors in the cybersecurity field since 2014 and 2015.
Launched in 2017, Check Point's sophisticated new security platform, Infinity, may prove to be a doubled-edged sword in the short-term, according to the Bank of America Merrill Lynch report.
Designed to head off the next generation of cyber threats, Check Point contends Infinity is the "only fully consolidated cyber security architecture that protects the business and IT infrastructure against Gen V (5th Generation) mega cyberattacks across all networks, endpoint, cloud and mobile."
However, while Infinity and other investments by Check Point could boost growth, they will also increase the cybersecurity company's expenses and weigh on its bottom line, the report noted.