CIBC World maintains Cisco (CSCO

) at outperform.

Analyst Steve Kamman says first-quarter revenue of $5.97 billion was slightly below his $6.02 billion estimate. Also, he says second-quarter guidance of 1% to 3% sequential revenue growth implies lower growth than a 3% consensus estimate, well below that of past seasonal trends.

However, he notes guidance does not include any year-end budget flush. He still expects reasonable year-end spending. Kamman sees 90 cents fiscal 2005 (July) earnings per share, and trims his $1.04 fiscal 2006 estimate to $1.03.

While concerned by a somewhat muted macro outlook, he thinks Cisco should outperform, taking a greater share of IT budgets more quickly in weaker economy. He has a $25 target.