Cisco Systems downgraded to "neutral"

03.04.08 - UBS

NEW YORK, April 3 (newratings.com) - Analysts at UBS downgrade Cisco Systems Inc (CSCO) from "buy" to "neutral," while reducing their estimates for the company. The 12-month target price is set to $27.

In a research note published this morning, the analysts mention that a slowdown in orders due to softness in the US and European enterprise segments raises concerns regarding the company?s revenue growth prospects. Cisco Systems might need to make acquisitions going forward in order to achieve its growth target of 12%-17%, the analysts add. The EPS estimates for FY08 and FY09 have been reduced from $1.41 to $1.40 and from $1.57 to $1.55, respectively.