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Cisco Systems (CSCO - Get Report) was downgraded to neutral from buy at Goldman Sachs with a price target of $48, down from $56.

Analyst Rod Hall's price target implies a 2.5% increase from Cisco's closing price Wednesday of $46.84. In trading Thursday, the stock was down 2.43% to $45.70.

The analyst, in a research note, said large enterprise spending will continue to weaken and telecom spending activity will remain depressed in the near term, according to The Fly

Hall also said he was concerned that negative trends In the telecom segment could persist "well into" 2020, driven by carrier pauses ahead of 5G and needed carrier network automation implementation, The Fly reported. Hall said he expects the market will move Cisco's multiple down to his price target, which he noted was closer to the company's historical price-to-earnings ratio.

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— Cisco (@Cisco) October 9, 2019

On Wall Street, Cisco had 19 buys, 12 holds, and two sells previously, according to Bloomberg.

James Fish of Piper Jaffray last month said Cisco, the networking giant, could soon go shopping for an acquisition to build out its portfolio of subscription software products.

Cisco reportedly was spurned in its efforts to buy Datadog for $7 billion, but Fish said there are a number of other attractive targets for the company.

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