Raymond James downgrades stock, citing concerns
- Cisco Systems stock falls after Raymond James downgrades
- Concerns over weak January-quarter sales outlook
- Analyst cites declining campus sales as a contributing factor
- Acquisition of Splunk Inc. seen as lacking differentiation
- Risk of worse than seasonal sales decline in upcoming quarter
Shares of Cisco Systems Inc. slipped in premarket trading after being downgraded by Raymond James. The downgrade was based on concerns over slowing sales in the near term, particularly due to declining campus sales. Analyst Simon Leopold also expressed doubts about the strategic value of Cisco’s acquisition of Splunk Inc., stating that it lacks differentiation. Leopold expects a worse than seasonal sales decline in the upcoming quarter. Cisco is set to report its fiscal first-quarter results on November 15.
Factuality Level: 7
Factuality Justification: The article provides information about Cisco Systems being downgraded by Raymond James due to concerns over slowing sales. It includes quotes from analyst Simon Leopold and mentions the acquisition of Splunk Inc. The article also mentions the upcoming fiscal first-quarter results for Cisco. Overall, the article provides factual information about the downgrade and the potential impact on sales.
Noise Level: 3
Noise Justification: The article provides relevant information about Cisco Systems being downgraded and the concerns over slowing sales. It includes quotes from an analyst and mentions the acquisition of Splunk Inc. However, it also includes unnecessary information about the stock market rally and futures for the Dow Jones and Nasdaq 100, which are unrelated to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: Shares of Cisco Systems Inc.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the downgrade of Cisco Systems Inc. by Raymond James, citing concerns over slowing sales. This information is relevant to financial markets as it may impact the stock price of Cisco Systems Inc.
Public Companies: Cisco Systems Inc. (CSCO), Splunk Inc. (SPLK)
Key People: Simon Leopold (analyst)
Reported publicly:
www.marketwatch.com 
