Cisco shares fairly valued ahead of Q4 results, says JMP Securities
JMP Securities analyst Erik Suppiger reiterated a Market Perform rating on Cisco Systems ahead of the company's Q4 earnings report on August 15, telling investors in a research note that he believes the quarter will be in line with Street estimates of 68c for EPS on revenue of $12.7B. Suppiger says that channel checks indicate that Cisco's flagship switching business was healthy during the quarter, with strength in data center switching, but its routing business was under pressure due to continued slow service provider spending. Additionally, the analyst says checks also indicate that Cisco's security business slowed following a "relatively strong" Q3, and he believes firewall sales may have paused ahead of an upgrade across its firewall product line. Suppiger feels that Cisco shares are fairly valued in light of expectations for in-line results with growth of 5% y/y in Q4.