First Albany cut its estimates and price target on Cisco (CSCO ).
Analyst Matt Barzowskas says the buying environment is not improving in the enterprise infrastructure space. He says while this caps the near-term opportunity for Cisco, the company continues to gain share. He notes while there's no opportunity for growth near-term within the telecom equipment market, it is becoming a smaller part of Cisco's total revenues.
He says no pickup in spending is expected for the rest of the year; he cut his $0.56 fiscal 2003 (July) earnings per share estimate to $0.55, and cut the $0.60 fiscal 2004 estimate to $0.58. Also, he cut his $18 target to $16.
Barzowskas thinks while the economic environment is limiting the company's near-term prospects, Cisco remains one of best run companies and will be a long-term survivor. He keeps his buy rating.