Pacific Crest Downgrades Cisco To Sector Perform

In a report released Monday, Pacific Crest analyst Brent Bracelin downgrades Cisco Systems, Inc.

from Outperform to Sector Perform. Analyst at Pacific Crest see a halt in Cisco's projected margin expansion and may be discontinued in 2015 with the expansion of its cloud strategy. The Pacific Crest note covering Cisco Systems mentioned the company's cloud service bringing M&A potential, targeting companies in the software or storage space. Bracelin forecasts fairly value in Cisco at $26 unless operating margin expands to 29 percent next year.