Lazard says with recent turmoil in the markets and more bad news on the macroeconomic front, they believe that the 12%-17% long-term growth rate will have to wait a little longer. Accordingly, firm is taking down their F2009 and F2010 across the board to account for continued weakness in enterprise IT spending as well as further deceleration in service provider capex, forecasting sub-10% top-line growth until the back half of C2009. Firm lowers their F1Q09 rev and EPS ests to $10.2 bln and $0.39, was $10.4 bln/$0.40, vs. (consensus $0.39 and $10.313 bln) and their F2Q09 ests to $10.4 bln and $0.39, was $10.7 bln/$0.41, (consensus $0.40, $10.561 bln). Firm's F09 rev est goes to $42.0 bln, was $43.4 bln, (consensus $42.910 bln); their F10 est goes to $46.5 bln, was $48.5 bln, (consensus $47.791 bln). Firm cuts tgt to $24 from $29.
Source: [http://www.stockmarketfunding.com/SMF-Blogs/Stock-Upgrades---Downgrades/October-2008/CSCO-Cisco-Systems--Lazard-lowering-ests-and-tgt-t.aspx]
