) to neutral from outperform.
Analyst Ryan Molloy says with five weeks remaining in the fourth quarter, Cisco's business is tracking in line with management's flat guidance, however, pent-up demand that fostered some optimism at the end of April has given way to more subdued demand in May and June.
Molloy says investor perception that a mild recovery is underway has driven shares higher, and while sentiment is better, the impact on the fourth quarter seems moderate at best, and the outlook for second-half business trends remains unclear. With fundamentals unchanged, he sees little evidence to support the shares advancing ahead. Molloy maintains his $17.50 target.