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Optical/IP

CIBC Downgrades Cisco, Juniper

A downgrade of two major networking players is likely to put pressure on networking stocks today.

CIBC World Markets has downgraded Cisco Systems Inc. (Nasdaq: CSCO) to a Hold from a Buy, citing concerns that Cisco is not positioned to adjust to changing demands in the telecom market. CIBC analyst Steve Kamman does not expect Cisco to meet its revenue estimates for fiscal year 2002. Sales for fiscal year 2001 were $21.5 billion.

Cisco CEO John Chambers will address his company’s current state of readiness today at Morgan Stanley Dean Witter’s “Internet, Software and Networking Conference 2001” in Arizona (see Chambers of Hope). In early trading, Cisco was down $3.38 (9.10%) to $33.75.

CIBC also downgraded Juniper Networks Inc. (Nasdaq: JNPR) from a Strong Buy to a Buy, citing general easing market capitalization. However, CIBC analysts wrote that Juniper is a good long-term play. Juniper was down $9.19 (8.51%) to $108.00 in early trading but has since made up some of its losses.

-- Matt Malina, research associate, Light Reading http://www.lightreading.com

Steve Saunders 12/4/2012 | 9:02:32 PM
re: CIBC Downgrades Cisco, Juniper how does Cisco's optical networking product portfolio compare to that of Sycamore, Ciena, and Nortel?

Are they catching up to these competitors, or falling further behind?
stout4555 12/4/2012 | 9:02:28 PM
re: CIBC Downgrades Cisco, Juniper HO HO HO....

falling behind! Long-Haul? Switching? Metro? OC-192? What else do they have besides Cerent? Everyone else seems to be going after the end-to-end approach, Cisco still thinks it's all about selling boxes...where's the integration? At this point I don't think they have the mustard to displace #1 or #2 in the next 2 years, per Chambers' claims..
Peter Heywood 12/4/2012 | 9:02:27 PM
re: CIBC Downgrades Cisco, Juniper Re Cisco selling boxes rather than solutions:

I recall Harminder Gill, director of engineering and planning at 360networks, making exactly the same comment.

He said this was one of the reasons why he rejected Cisco's Monterey switch and and went with Sycamore instead.

Didn't make it into my story, I'm afraid:

http://www.lightreading.com/do...
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