Cisco's 'overly cautious' guidance brings buying opportunity, says JPMorgan
JPMorgan analyst Samik Chatterjee believes Cisco Systems' "overly cautious" provides an opportunity to "double down" in the shares. After speaking to management, the analyst believes the "material change" seen by Cisco is relative to both service providers and enterprises in China. This is region where the company is increasingly seeing itself blocked from deals as a consequence of the trade situation, Chatterjee tells investors in a research note. While China remains less than 3% of total revenues, the steep decline of more than 25% in order rates is driving a significant part of the miss on guidance relative to expectations, says the analyst. Chatterjee maintains a December 2019 price target of $62 and reiterates Cisco as his top pick across his coverage universe.