Street View: Cisco set for a tough year with inventory in focus

Splunk

15/02/2024 13:08

** Cisco Systems  CSCO.O  said it would cut 5% of its global
workforce, or more than 4,000 jobs, and lowered its annual
revenue target as the company navigates a tough economy that has
led to thousands of layoffs by tech firms this year.
    ** Shares down 4.34% at $48.1 in premarket trade
    
    RECOVERY IN FY25 ON INVENTORY ABSORPTION
    ** J.P. Morgan says co confirmed investor fears that the
inventory backlog in the networking equipment division was more
than temporary, given CSCO lowered its annual revenue forecast
   ** Jefferies ("buy," PT: $55) says co will find growth
difficult in FY24 as inventory backlog with customers continues,
but expects business to bounce back to higher revenue in FY25 
    ** William Blair ("market perform) says co's strategic
shortcomings are becoming visible and sees challenges to
improvement in valuation
    ** Evercore ISI ("outperform," PT: $55) says better macro
conditions, Splunk  SPLK.O  integration and cloud division
growth to propel growth in FY25
    
    

    

 (Reporting by Gokul Pisharody in Bengaluru)
 ((Gokul.Pisharody@thomsonreuters.com))