FBR Capital Downgrades Cisco (CSCO) to Underperform, Sees Reduction in Routers and Switches
- Apple, Inc. (AAPL) Tops Q2 EPS by $1.44; Announces 7-for-1 Stock Split
- Market Wrap: Big Earnings Galore; Amazon, HBO Enter Agreement; GE Eyes French Industrial Giant
- Facebook (FB) Tops Q1 EPS by 10c
- After-Hours Stock Movers 4/23: (ANGI) (AAPL) (FB) Higher; (HEAR) (TNP) (IM) Lower (more...)
- Qualcomm, Inc. (QCOM) Tops Q2 EPS by 9c; Guides Q3 to Low-Side of Consensus
FBR Downgrades Cisco - "a slow, but meaningful, reduction in the number of routers and switches deployed" - FBR
"We believe Cisco will become increasingly more challenged to offset weaker-than-expected routing and switching demand as it works to transition to a more software- and service-centric business model," the analyst said in its downgrade report. "Looking ahead, we see the potential for additional negative technological trends that could significantly blur the lines between routers, switches AND servers."
They continued, "As a result, we expect: (1) a slow, but meaningful, reduction in the number of routers and switches deployed into networks; (2) the adoption of an increasingly larger mix of white box, lower-margin product; (3) the announcement of new competitive products and vendors that could negatively affect gross margins at both companies and across the space. We encourage investors to take profits, and we move to the sidelines as we work to better understand the significant changes occurring across the networking landscape."
For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.
Shares of Cisco closed at $21.67 yesterday.
You May Also Be Interested In
- FBR Capital Downgrades Flagstar Bancorp (FBC) to Market Perform; Removes from 'Top Picks' List
- Skechers (SKX) Target, Estimates Lifted at Sterne Agee Post Q1
- Buy iRobot (IRBT) on Pullback Post Q1 - Needham & Company
Create E-mail Alert Related CategoriesAnalyst PT Change, Downgrades, Hot Downgrades
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!