UPDATE: Goldman Sachs Downgrades Cisco Systems on Elevated Near-Term Risks
In a report published Thursday, Goldman Sachs analyst Simona Jankowski downgraded the rating on Cisco Systems (NASDAQ: CSCO) from Conviction List-Buy to Buy, and lowered the price target from $30.00 to $25.00.
In the report, Goldman Sachs noted, “Cisco reported F1Q (Oct) sales/non-GAAP EPS at $12.1bn/$0.53, vs. GSe at $12.4bn/$0.52 and the Street at $12.4bn/$0.51. It guided for a F2Q yoy sales decline of 8-10%, implying revenues of $10.9-11.1bn, well below prior GSe/Street at 6%/4%, and EPS of $0.45-0.47, vs. GSe/Street at $0.55/$0.52. Cisco also issued FY14 (Jul) non-GAAP EPS guidance of $1.95-2.05 vs. prior GS/Consensus at $2.19/$2.10. We are removing the stock from the Conviction List on reduced confidence in the near-term trajectory, though maintaining our Buy rating on valuation. Since being added to the CL on 8/9/12, Cisco shares are up 41% vs. the S&P 500 up 27%.”
Cisco Systems closed on Wednesday at $24.00.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.