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Cisco’s 2008 Outlook Not So Hot
By Mark Evans | February 7, 2008
If Cisco is a harbinger for the health of the telecom equipment market, 2008 might be a tough year.
In posting fairly good fiscal second-quarter results, Cisco said revenue will only grow 10% in the third-quarter compared with its long-term expectations of 12% to 17%. He said customers in the U.S. and Europe are being “cautious”. Not good.
UBS Securities said Cisco’s sales “weakened more than we thought in January with orders growing only 10% [year-over-year], and U.S. and Europe weaker in that month. Historically, April has been challenging quarter for CSCO, so weak order growth in January combined with historically soft April has led to much lower guidance for April than we thought.”
UBS maintained its buy rating on Cisco but dropped its target price to $27 from $35.
More: Check out Bloomberg News for more details.
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