UPDATE: Cisco stock downgraded at Morgan Stanley
Morgan Stanley analyst James Faucette downgraded Cisco Systems Inc. (CSCO) shares to equal weight from overweight on Tuesday, a day before the company's fiscal second-quarter earnings report. Current estimates for Cisco "build in continued strength," Faucette wrote, and while he thinks that Cisco is "steadily executing on the security opportunity," the company might have trouble offsetting the deceleration in the hardware cycle. He also sees "slowing improvements" in the company's security portfolio, which could make it harder for Cisco to achieve "incremental pull through for the rest of the businesses." Faucette lowered his price target on the stock to $49 from $51. Shares are up 0.3% in Tuesday morning trading, and they've gained nearly 10% over the past three months. The Dow Jones Industrial Average has fallen 0.4% in that time.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
February 12, 2019 11:30 ET (16:30 GMT)
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