Cisco Downgraded To Neutral At Goldman Sachs

By Markets MarketWatch Pulse

Cisco Systems Inc. was downgraded to neutral from buy and removed from Goldman Sachs' Americas Buy list on Wednesday. Analyst Simona Jankowski also lowered the 12-month price target on Cisco's stock to $32 from $35, citing decelerating earnings-per-share growth and other "elevated risks" in the near-to-intermediate term that could weigh on the company's expansion. Cisco's shift to a more "recurring revenue" model may help strengthen sales and give it a stronger position in the Internet of Things market long term, but Simona said the near-term risks are of larger concern at the moment. Shares of Cisco fell 1.6% to $28.50 in morning trade - representing the biggest decliner in the Dow Jones Industrial Average. The stock is about flat on the year, versus a 0.5% decline for the Dow 30.

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