UPDATE: JP Morgan Downgrades Cisco Systems to Underweight on Sluggish Enterprise Spending

JP Morgan downgraded Cisco Systems

from Neutral to Underweight and lowered the price target from $20.00 to $18.00. JP Morgan said, "We believe Cisco is exposed to sluggish enterprise spending. We also see Cisco's risk/reward profile as more challenged at the current share price. Despite refocusing on its core businesses, streamlining its operations and prioritizing margins and earnings over revenue growth, we believe positive investor sentiment and Cisco's shares have gotten ahead of themselves. We believe investors should be using Cisco as a source of funds from current levels." Cisco Systems closed at $21.03 on Wednesday.