Boston, MA 12\/13\/2013 (wallstreetpr) –\u00a0 Cisco Systems, Inc. (NASDAQ:CSCO)\u2019s weak growth outlook coupled with growing China\u2019s market concerns dragged down its share prices on Thursday.<\/p>\n
Cuts Growth Outlook<\/b><\/p>\n
Cisco\u2019s Management has lowered the revenue growth for the coming years. As per them the revenue is not expected to grow by 3%-6% over the period of next three to five years, as against their previous forecast of 5%-7% of revenue growth. The earnings per share growth rate during the same period has also been scaled down to 5%-7% than the previous expectation of 7%-9%.<\/p>\n
Key lies in Emerging Markets<\/b><\/p>\n
During the Financial Analyst conference, the company\u2019s CEO John Chambers reprised on the fact that there is a greater urgency to improve its market share in China, which according to him could happen in another couple of quarter. While the emerging markets are showing slow performance, still the company expects 6%-10% growth in these markets post recovery.<\/p>\n
Among the top five emerging market share, China\u2019s market share decline accounted for 18%,the largest single market decline in the total of 21% for Cisco. The continuous decline in Chinese market is due to the alleged U.S. spying on the emerging markets through internet surveillance.<\/p>\n
Chambers affirms his statement to resolve its China business in a quiet and patient manner. He added that instead of asking help from government leaders, he and his team will continuously engage in helping relations growstrong over China. Chambers pointed out that it would be in best interest for the U.S. as well as China that their companies continue to work together.
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Analyst Opinion<\/b><\/p>\n
Tim Long at BMO maintained their \u2018outperform\u2019rating for the company. They have also kept the price target unchanged at $25. Long added that BMO continues to see some momentum in the stocks in the near future as they still see growth to catch up in Cisco\u2019s strong units.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 12\/13\/2013 (wallstreetpr) –\u00a0 Cisco Systems, Inc. (NASDAQ:CSCO)\u2019s weak growth outlook coupled with growing China\u2019s market concerns dragged down its share prices on Thursday. […]<\/p>\n","protected":false},"author":10,"featured_media":12857,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[2112,1701,322,605],"stock_ticker":[],"class_list":["post-12856","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-cisco-systems-inc","tag-cisco-systems-inc-nasdaqcsco","tag-csco","tag-nasdaqcsco","entry"],"acf":[],"yoast_head":"\n