Cisco Systems downgraded to ?neutral"

03.08.06 - Robert W. Baird

NEW YORK, August 3 (newratings.com) ? Analysts at Robert W Baird downgrade Cisco Systems, Inc (CSCO) from "outperform" to "neutral," while reducing their estimates for the company. The target price has been reduced from $25 to $19.

In a research note published this morning, the analysts mention that the company is likely to report its F4Q results at the lower end of expectations. The analysts expect Cisco Systems to announce conservative guidance, since field checks have indicated depleting pipelines. The enterprise environment seems to have softened, IT purchases are likely to remain sequentially flat in 2H06 and there is a slowdown in the US economy, Robert W Baird adds. The EPS estimate for FY07 has been reduced from $1.22 to $1.17.