JPMorgan Chase Downgrades CISCO Systems to Neutral, Lowers PT

JPMorgan Chase has downgraded CISCO Systems Inc.

to Neutral from overweight, and reduced price target from $21 to $17. JPMorgan Chase noted, "We are downgrading Cisco to Neutral from Overweight. To be clear, we're not making a call on FQ1'13, but do believe FQ2'13 guidance is likely to disappoint and expect 2013 to be a tough year as macro pressures persist (weak enterprise and gov't spending, Europe, etc.). We also believe longer term SDN and competitive risks will keep a lid on Cisco's P/E multiple. With the shares likely range bound for the foreseeable future, we see little reason to be Overweight and are moving to the sidelines. We believe battered telco equipment names like Ciena and smartphone and tablet geared Qualcomm look incrementally better for 2013." CISCO Systems closed at $16.83 on Thursday.