Cisco Systems downgraded to "neutral"

07.02.08 - Robert W. Baird

NEW YORK, February 7 (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 $34 to $23.

In a research note published this morning, the analysts mention that although Cisco Systems has posted its F2Q revenues and EPS in-line with the consensus, there was a steep decline in the company?s order growth rates in January. Cisco Systems has reported its January figures short of the guidance for the first time in the last five years due to a sudden downturn in activity during the month in the US as well as the European markets, the analysts say. The EPS estimates for 2008 and 2009 have been reduced from $1.57 to $1.49 and from $1.82 to $1.67 respectively.