Jefferies Maintains “Hold” on Cisco Systems after Disappointing Outlook (CSCO)

By Staff,

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Networking equipment maker Cisco Systems, Inc. ( CSCO ) on Thursday caught some tepid commentary from analysts at Jefferies & Co.

The firm maintained its "Hold" rating and $18 price target on CSCO following the company's third quarter earnings and weak fourth quarter guidance. That target suggests a small downside to the stock's Wednesday closing price of $18.78.

A Jefferies analyst commented, "…while the company is executing rather well, the business remains highly-correlated with the ebbs and flows of the global macro-economy." Accordingly, the firm cut its earnings estimates for CSCO through 2013.

Cisco Systems shares fell $1.54, or -8.2%, in premarket trading Thursday.

The Bottom Line
Shares of Cisco Systems ( CSCO ) have a 1.70% dividend yield, based on last night's closing stock price of $18.78. The stock has technical support in the $16-$17 price area. If the shares can firm up, we see overhead resistance around the $20-$21 price levels.

Cisco Systems, Inc. ( CSCO ) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: CSCO

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