UBS Warburg

downgraded

Cisco

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to hold from buy, citing continued concerns about withering capital expenditures from carriers for the rest of the year.

Warburg said capex spending would be the biggest hurdle for the networking giant to overcome, with budgets either drastically reduced to trim costs or already spent on things like gear or software.

The call by UBS Warburg highlights the growing schism in the analyst community about the outlook for big tech. While some analysts think that business cannot possibly get any worse -- often making valuation calls, citing the unprecedented downturn in tech stocks as one reason to buy at these levels -- others think the outlook won't get much better until the second half or much later.