4 Reasons Why Morgan Stanley Is Downgrading Cisco:
Still Cause For Concern
Morgan Stanley has downgraded Cisco from an "overweight" rating to "equal weight" following the networking giant's positive fourth-quarter fiscal year 2015 earnings report last week that beat analysts' estimates.
According to the Morgan Stanley report, led by analyst James Faucette, Cisco has a tough road ahead due to "stiff" competitive playing fields, a "weak" product refresh cycle, and excessive research and development spending in order to prevent market share loss, according to a recent report. Faucette also doesn't expect the San Jose, Calif.-based company to make any "needle moving" acquisitions in the near future.
Although the firm downgraded Cisco, Morgan Stanley is still maintaining its $30 price target on the company's stock. Cisco declined to comment on the report.
Morgan Stanley has downgraded Cisco from an "overweight" rating to "equal weight" following the networking giant's positive fourth-quarter fiscal year 2015 earnings report last week that beat analysts' estimates.
According to the Morgan Stanley report, led by analyst James Faucette, Cisco has a tough road ahead due to "stiff" competitive playing fields, a "weak" product refresh cycle, and excessive research and development spending in order to prevent market share loss, according to a recent report. Faucette also doesn't expect the San Jose, Calif.-based company to make any "needle moving" acquisitions in the near future.
Although the firm downgraded Cisco, Morgan Stanley is still maintaining its $30 price target on the company's stock. Cisco declined to comment on the report.
No comments:
Post a Comment
Note: only a member of this blog may post a comment.