Banc of America Cuts Cisco to 'Buy'

Analyst Christopher Crespi thinks the firm needs to work through the North American spending slowdown before growth returns

Banc of America downgraded Cisco(CSCO ) to buy from strong buy.

Analyst Christopher Crespi cut the $0.63 fiscal 2001 (July) EPS estimate to $0.60 and cut the $0.75 fiscal 2002 to $0.70 due to waning confidence about the recovery of a number of key industry and macroeconomic trends. Crespi believes the current slowdown of North American carrier spending, as well as reduced IT budgets, will likely lead to a longer-than- anticipated transitional period before normalized growth resumes. Additionally, Crespi notes that Europe is starting to show signs of weakness. He says growing dependence by investors on the North American economic recovery in the second half of 2001 creates an inherent risk to published estimates.

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