Wunderlich Cuts Cisco (CSCO) to Hold; Analyst Sees More Value in Compressed Areas
- Top 10 News for 11/17 - 11/21: Halliburton's Big Buy; Japan Back in Recession; China Cuts Key Rate
- China Cuts Benchmark Rate Amid Weaknening Growth Prospects; Markets React (FXI)
- Dow Chemical (DOW), Third Point Enter Agreement; Four New Independent Directors Added
- Large Cut from OPEC Would Be 'Self-Negating', Says Goldman Sachs
- UPDATE: Volkswagen AG (VLKAY) Will Invest EUR 85.6B Over Next 5Y in Auto Ops - Bloomberg
Wunderlich Securities downgraded Cisco (NASDAQ: CSCO) from Buy to Hold with a price target of $24.00 (from $25.00). Analyst Matthew S. Robison said he sees more value in other tech stocks that have fallen.
"We see more opportunity in recent valuation compression among small cap/ growth stocks in networking than the implied haven of the Cisco (CSCO) market cap, but our downgrade is more than a trading call. We came away from industry interviews in recent weeks with the view that the market has less interest in the Cisco product suite than in past transitions. We see the range of alternatives for network automation/software defined networking (SDN), network function virtualization (NFV), and cloud services as dilutive to the Cisco installed base upgrade opportunity. We have trimmed our forecast moderately and with the adjustment we have reduced our 12-month target to $24 from $25. Because we view Cisco shares to be close to fully valued, we are downgrading to Hold from
Buy," said Robison.
Shares of Cisco closed at $22.85 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BofA/Merrill Lynch Downgrades Aruba Networks (ARUN) to Underperform
- Intel (INTC) PT Lifted to $40 at Imperial Capital Following Upbeat Analyst Day
- Goldman Sachs Resumes Hasbro (HAS) at Buy, Mattel (MAT) at Neutral
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades, Hot Comments, Hot Downgrades
Related EntitiesWunderlich Securities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!