NEW YORK (TheStreet) -- Shares of Cisco Systems (CSCO) are up 0.82% to $29.59 in early market trading Thursday, despite getting a downgrade by analysts at Sterne Agee CRT to "neutral" from "buy" this morning.
The firm issued a $31 price target, based on valuation. Sterne Agee analysts added that they see limited earnings leverage in the next few quarters.
However, Cisco reported its fiscal third quarter earnings ahead of expectations late Wednesday, and issued an upbeat fourth quarter outlook.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "This was the most 'take no prisoners' I have ever heard John," about the attitude of current chairman and CEO John Chambers on the earnings call.
"He is giving successor Chuck Robbins a strong hand. Three of a kind-Robbins takes it to a full house!" he added.
Cramer thinks Chambers has put Cisco in a very strong position as he transitions the company to Robbins, who he believes can take the company to the next level.
For the fiscal third quarter, the company earned 54 cents a share, above analysts' estimates of 53 cents a share.
Revenue grew 4.9% year over year to $12.14 billion for the quarter, compared to analysts' estimates of $12.07 billion.
Cisco designs, manufactures, and sells Internet protocol-based networking and other products related to the communications and information technology industry.
The company also has a line of products for transporting data, voice, and video around the world, operating in the Americas, Europe, Middle East, Africa, Asia Pacific, Japan, and China. It is based in San Jose, Calif.