Macquarie initiated Cisco with an Underperform rating and $26 price target. The firm is not making a call on the upcoming quarter, but on longer-term trends. Macquarie believes forward consensus estimates are too optimistic and expects the enterprise switching market to contract due to a combination of denser compute, migration of enterprise server workload to hyperscale/cloud, and adoption of wireless/mobility which will reduce switch port demand. The firm also has concerns Service provider market headwinds could increase, emerging markets will remain tepid, and the Intercloud strategy will not have a significant impact near-term, all of which will lead to flat earnings growth in 2016.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here