UPDATE: J.P. Morgan Lowers PT on Cisco Systems Following In-Line FQ4 Results

In a report published Thursday, J.P. Morgan analyst Rod Hall reiterated a Neutral rating on Cisco Systems CSCO, but lowered the price target from $26.00 to $24.00.

In the report, J.P. Morgan noted, “Cisco reported in line FQ4 results but then proceeded to perplex us by indicating solid underlying trends, guiding a touch weak and announcing a 4,000 person restructuring. On closer inspection we believe that the restructuring is a smart effort to redirect opex to growth opportunities. The guidance is more of an issue for us as we believe it reflects uncertainty in a mixed macro environment. We expect the shares to be down tomorrow but, given strong underlying trends, believe CSCO is likely to recover losses and trade better in late 2013 as enterprise and carrier spending trend upward. Reiterate Neutral.”

Cisco Systems closed on Wednesday at $26.38.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorPrice TargetAnalyst RatingsJ.P. MorganRod Hall
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!