From Standard & Poor's Equity ResearchCREDIT SUISSE CUTS ESTIMATES, TARGET FOR CISCO SYSTEMS
Credit Suisse analyst Paul Silverstein says until Cisco Systems' (CSCO) revenue growth rates stabilize and begin to expand, he sees the shares remaining range-bound with downward bias.
Silverstein says guidance commentary supports his view that magnitude of impact of global macro-economic downturn has not been fully discounted by Street.
He cuts $1.30 fiscal year 2009 (July) EPS estimate to $1.24, $1.33 fiscal year 2010 to $1.17, and $16 price target to $15. He rates neutral.
He continues to view Cisco and Juniper Networks (JNPR) as the relatively best positioned in terms of operating models and long-term risk/reward.
CREDIT SUISSE CUTS HARMAN INTERNATIONAL TO UNDERPERFORM FROM NEUTRAL
Credit Suisse analyst Christopher Ceraso says his $20 12-month and DCF-derived target for Harman International Industries (HAR) drops to $9, suggesting further potential 40% decline in shares.
Ceraso says its second quarter was much weaker than expected, with $0.18 adjusted loss vs. his $0.26 profit estimate and consensus at $0.17 profit. He notes that its automotive unit, HAR's largest and most important business, posted a $23 million operating loss vs. his projected profit of $12 million.
He says the company is in the midst of a major restructuring, but those efforts will not have much impact until 2011.
He slashes $1.24 fiscal year 2009 (June) EPS estimate to $0.10 loss and $1.90 fiscal year 2010 EPS estimate to $1.29 EPS.
CITIGROUP UPGRADES AKAMAI TO BUY FROM HOLD
Citigroup analyst Mark Mahaney says Akamai Technologies (AKAM) fourth quarter non-GAAP EPS of $0.44 beat his $0.41, Street's $0.40 views on better-than-expected revenue of $213 million (vs. his $205 million and the Street's $207 million forecasts).
Mahaney says fundamentals were soft, but not as soft as expected; he cites 15% year-over-year organic revenue growth vs. third quarter's 21%, year-over-year EBITDA margin drop of 20 bps to 47%. He says key stabilizing factors were a flat cash gross margin (excluding Acerno acquisition) due to cost efficiencies, other factors, solid churn and gross customer additions.
He notes year-over-year comps get easier in 2009. He raises $12 target to $22.