CIBC Downgrades Cisco, Juniper
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