Cisco Systems "buy," target price reduced - update

07.02.08 - UBS

NEW YORK, February 7 (newratings.com) - Analysts at UBS maintain their "buy" rating on Cisco Systems Inc (CSCO), while reducing their estimates for the company. The target price has been reduced from $35 to $27.

In a research note published this morning, the analysts mention that the company has reported its F2Q08 results in-line with expectations. The analysts add, however, that Cisco Systems? business last month decelerated more than had been anticipated due to the soft US and European markets. While the April quarter has always been a challenging one for Cisco Systems, the company has announced its guidance for the quarter much lower than was expected, UBS adds. The EPS estimates for 2008 and 2009 have been reduced from $1.46 to $1.41 and from $1.66 to $1.57, respectively.