CS First Boston cut estimates on Cisco Systems (CSCO).
Analyst Lissa Bogaty says the ongoing poor technology spending environment, pricing pressure, and currency exchange difficulties have lead to her estimate revisions. She cut the Q4 revenue forecast to down 10% sequentially from down 4.5%, and trimmed the $0.03 EPS to $0.02 EPS. She now sees fiscal 2002 (July) revenues down 18.2% vs. her previous estimate of down 11.7%.
Bogaty notes that with cost reductions, this trims only $0.05 off her EPS estimate. She believes the lack of a product cycle makes Cisco a trading vehicle. At the low end of its trading range, Bogaty thinks the stock should move up to the higher end of this range on better macro news. She maintains her buy rating.