Cisco’s 33 percent growth in
“Cisco did not experience significant component shortages in its switching business, suggesting that the component shortages that impacted Arista are not pervasive; therefore, we believe they are less likely to last for an extended period,” Suppiger wrote in a note.
Palo Alto Networks
The analyst noted that Cisco’s upgrading of its installed base from its traditional firewalls to next-generation firewalls creates opportunities for other firewall vendors, such as Palo Alto Networks to penetrate Cisco’s accounts when Cisco prompts customers to upgrade.
“In our view, it is a natural time for those customers to look at alternative solutions as Cisco is requiring them to replace their legacy solution,” Suppiger highlighted.
Suppiger maintained his Market Perform rating on Cisco shares, but lowered his FY 2017 EPS estimate to $2.33 (consensus: $2.43) on revenues of $47.5 billion (consensus: $50 billion) from $2.36 and $49.4 billion, respectively.
At Last Check
- Arista shares were up 0.15 percent at $88.20.
- Cisco shares were down 5.5 percent at $29.83.
- FireEye shares were up 0.92 percent at $13.74.
- Palo Alto shares were up 2.46 percent at $164.37.
|Oct 2016||Argus Research||Initiates Coverage On||Buy|
|Sep 2016||MKM Partners||Downgrades||Buy||Neutral|
|Sep 2016||Deutsche Bank||Maintains||Buy|
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