UPDATE: Oppenheimer Reiterates Outperform Rating, Lowers PT on Cisco Systems on Near-Term Weakness, Positive Long-Term View

In a report published Thursday, Oppenheimer analyst Ittai Kidron reiterated an Outperform rating on Cisco Systems CSCO, but lowered the price target from $27.00 to $24.00. In the report, Oppenheimer noted, “While we anticipated soft Federal spending and slowed emerging markets, the meltdown in Cisco's BRIC business proved far beyond expectations. Orders declined across the board, from China (-18% YoY) to Russia (-30%), India (-18%), and Brazil (-25%). And coupled with a pause ahead of Cisco's new product cycle, the company's product bookings fell materially short of expectations. Sales cycles could remain lengthy near term, and although we have high confidence in Cisco's new products, we believe it could take 2-3 quarters before traction is noticeable. So while the bear case could reemerge near-term, we feel a strong dividend yield and aggressive buyback could limit downside. We maintain our positive long-term view.” Cisco Systems closed on Wednesday at $24.00.