Goldman Sachs Remains Neutral On Cisco Systems (CSCO)

In a research report released by Goldman Sachs GS last week, the firm's analysts reiterated their Neutral rating on shares of Cisco Systems CSCO. Cisco reported its quarterly earnings on August 11th. The company beat Wall Street earnings estimates, but gave disappointing forward looking guidance. The analysts wrote, "We remain Neutral on Cisco due to a combination of macro (cyclical) and micro (structural/competitive) factors, both of which were evident in its disappointing outlook and margins. From a macro perspective, Cisco’s comments on “mixed signals” from customers and “unusual uncertainty” are consistent with our view that the cyclical uplift in CommTech has played out, and that secular trends will drive performance from here." Goldman Sachs has a price target of $25 on the stock, which is based on 17x normalized EPS estimates. During today's trading session, CSCO shares have gained 3.23% to $22.05.