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.