Cisco Systems "outperform," target price reduced - update

22.01.08 - RBC Capital Markets

NEW YORK, January 22 (newratings.com) - Analyst Mark Sue of RBC Capital Markets maintains his "outperform" rating on Cisco Systems Inc (CSCO). The target price has been reduced from $33 to $29.

In a research note published this morning, the analyst mentions that the company?s stock multiples have recently contracted. Despite Cisco Systems witnessing robust secular growth trends in the service provider segment and in emerging markets, concerns related to a recovery in the manufacturing, financial and retail segments are likely to persist, the analyst says. Checks suggest that most of the companies continue to be behind plan in actual spend, RBC Capital Markets adds.