Cisco Systems downgraded to "neutral" - update

16.01.07 - Banc of America

NEW YORK, January 16 (newratings.com) - Analysts at Banc of America Securities downgrade Cisco Systems Inc (CSCO) from "buy" to "neutral." The target price is set to $30.

In a research note published this morning, the analysts mention that Cisco Systems' growth is likely to slow over the forthcoming few quarters, given the limited scope for share gains, the company's peaking margins and the fact that the salesperson headcount benefit was captured last quarter. The analysts expect Cisco Systems to revert to a long-term growth of 10%-15% in FY08.