UPDATE: Nomura Reiterates on Cisco Systems on Near-Term Challenges, Limited Downside Risk

In a report published Thursday, Nomura analyst Stuart Jeffrey reiterated a Buy rating on Cisco Systems CSCO, but lowered the price target from $27.50 to $24.50. In the report, Nomura noted, “Cisco reported slightly better-than-expected Q1 EPS of 53c vs consensus of 51c, with strong gross and adjusted operating margins (63% and 29%, respectively). Cisco guided for revenue to fall 8-10% yoy in FYQ2. Margin targets are retained as are long-term growth targets for revenue and EPS. The company has spent $2bn in stock buy-backs and has extended its authorized buyback program by a further $15bn. With the revenue miss likely already priced in at the stock market open, we see limited downside risk.” Cisco Systems closed on Wednesday at $24.00.