Cisco: share down, Jefferies cuts TP
(CercleFinance.com) - Jefferies reinstates its "buy" recommendation on Cisco Systems, albeit with a reduced target price of 52 dollars (from 65 dollars), in the wake of its reduced revenue and EPS forecasts due to the company's supply chain problems in China.
"Further, we suspect that the company's supply chain issues may be getting exacerbated by their own supply chain execution," the broker said, believing that Cisco may have been slow to build up inventory and commit to purchases.
These doubts seem to be predominant, with the share down almost 11% at 43 dollars in early trading today.
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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.
"Further, we suspect that the company's supply chain issues may be getting exacerbated by their own supply chain execution," the broker said, believing that Cisco may have been slow to build up inventory and commit to purchases.
These doubts seem to be predominant, with the share down almost 11% at 43 dollars in early trading today.
Copyright (c) 2022 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.