Cisco Systems shares got downgraded by Goldman Sachs analysts, who also cut their price outlook on the stock.
Analyst at Goldman Sachs lowered their rating on the networking hardware/telecom equipment maker’s shares to neutral from buy. Analyst Rod Hall also slashed his price target on the stock to $48, from $56. He noted that the price target was closer to the company's historical price-to-earnings ratio.
The analyst indicated in his note that large enterprise spending will continue to weaken and telecom spending activity will remain tepid in the near term (as reported in The Fly).
Hall also thinks that weakness in the telecom segment could persist well into 2020, due to carrier pauses ahead of 5G and needed carrier network automation implementation, The Fly reported.