Cisco: shares lag after Morgan Stanley downgrade
(CercleFinance.com) - Shares of Cisco were flat in early trading on Tuesday after Morgan Stanley downgraded the stock on concerns about the group's security business.
The broker downgraded the stock from "overweight" to "equal weight" and cut its target price from 51 dollars to 49 dollars.
"Cisco's stock's multiple has meaningfully converged with the market over the past 1.5 years, and we therefore think it is a good time to step to the sidelines," Morgan Stanley wrote in a note.
While the broker thinks Cisco is "steadily executing" on the security market, the current pace is unlikely to offset deceleration in the traditional hardware cycle, it said.
Cisco will report its second-quarter results tomorrow evening.
Cisco shares were up 0.3% at 47.7 dollars on the New York Stock Exchange. The shares have risen by over 17% over the last 12 months.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker downgraded the stock from "overweight" to "equal weight" and cut its target price from 51 dollars to 49 dollars.
"Cisco's stock's multiple has meaningfully converged with the market over the past 1.5 years, and we therefore think it is a good time to step to the sidelines," Morgan Stanley wrote in a note.
While the broker thinks Cisco is "steadily executing" on the security market, the current pace is unlikely to offset deceleration in the traditional hardware cycle, it said.
Cisco will report its second-quarter results tomorrow evening.
Cisco shares were up 0.3% at 47.7 dollars on the New York Stock Exchange. The shares have risen by over 17% over the last 12 months.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.