Cisco Systems Inc. (CSCO - Get Report) was down 3.2% to $45.95 on Friday after the stocks was downgraded to "neutral" from "buy" by analysts at Nomura Instinet with a $50 price target. 

Nomura analyst Jeffrey Kvaal believes that the tech company's stock is too expensive at current levels as the stock has jumped 20% year to date. Kvaal attributed that jump to the numerous IT purchases the company has made in recent months. 

But those tailwinds won't help carry the company in 2019, the analyst said. 

"Through 2018, IT spending growth accelerated materially, Cisco's new Catalyst 9000 series more than tripled its customer count, and Cisco's software mix hit about 25% of sales. These drivers helped Cisco exceed consensus estimates through 2018," Kvaal wrote. "However, spending may be wobbling; comments from Dell, HPE, and Broadcom suggest incremental caution in chief investment officer thinking," Kvaal added. "Cisco's ongoing product refresh leaves it insulated, though not immune, from a slowdown."

The Action Alerts PLUS holding is expected to earn $3.33 a share in fiscal 2019. Nomura's $50 price target represents a multiple of 15 times future expected earnings. 

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