- After falling 4.8% yesterday in the wake of downbeat guidance from its fiscal Q1 results, Cisco Systems (NASDAQ:CSCO) is moderating somewhat so far today, +0.6%.
- Analyst lowered estimates accordingly but overall look bullish with several holding their Buy ratings. Credit Suisse (SIX:CSGN) is the standout, reiterating at Underperform with the company "running out of levers." The 7% decline in the company's switching gear is indicative of losing share in the data center area, it says.
- Conversely, Deutsche Bank (DE:DBKGn) held a Buy rating and $37 price target, implying more than 22% upside. Drexel Hamilton trimmed its price target to $36 from $37.
- Jefferies is staying bullish as well, noting “the disruption in near-term sales associated with Cisco’s move toward SaaS/recurring revenue and their propensity to sandbag guidance from time to time." It's got a Buy rating and $35 target, while cutting fiscal 2017 revenue estimates to $48.17B from $50.21B.
- BMO Capital Markets cut estimates as well, but held an Outperform rating and $33 price target: "The stock has typically performed well after revenue resets, and we expect the same dynamic this time around."
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