NEW YORK (TheStreet) -- News of a downgrade from Barclays (BCS) didn't hurt Cisco (CSCO) too much Tuesday as the stock remains up 0.9% trading at $21.70. Barclays downgraded the networking equipment manufacturer to "equalweight" from "overrate" and dropped its price target to $23 from $25 on Tuesday.
Barclays cited "uneven demand trends, secular headwinds, and a lack of major catalysts" as the reason for the downgrade. Barclays further stated that it was "unlikely for the shares to rerate higher until it becomes clear that the company can successfully execute on its major product transitions and fully participate in Cloud and software defined networking (SDN)."
Despite the downgrade Cisco benefits in the market place due to its 3.5%-plus dividend yield. While Barclays was downgrading Cicso it upgraded its price target on computer maker HP (HPQ) by 15%
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Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."