Earnings Report: Cisco and Price Target

earnings report: While investors applauded Cisco after its last earnings report as executives said tariffs from the U.S.-China trade war were not likely to slow growth and that the end of headwinds from memory-chip pricing was in sight, analysts appear less optimistic on enterprise spending seven weeks into 2019, according to Market Watch. On Tuesday, Morgan Stanley analyst James Faucette downgraded Cisco to equal-weight from overweight and reduced his price target to 51 from 49 on the believe that Cisco's security business is unlikely to offset deceleration in the traditional hardware cycle. When Cisco CSCO, 1.89% reports fiscal second-quarter earnings after the market closes on Wednesday, executives will provide a closely watched forecast from a company that is typically seen as a bellwether for tech and the economy. Even with the downgrade, Cisco shares were up 0.5% at 47.81 at last check Tuesday. In 2013, Cisco acquired cybersecurity company Sourcefire for 2.7 billion. Also, Faucette said the recent departure of Sourcefire founder Martin Roesch, who we think has been integral to the security roadmap and talent retention success, gives us additional pause. (news.financializer.com). As reported in the news.