Shares of Cisco Systems may be about to hit a wall, as the network equipment maker struggles with rising rates, a strong dollar and market share losses in the months ahead, according to JPMorgan, which on Wednesday reiterated a neutral rating on the name.
"Cisco is in a tough spot heading into 2017 as we see few company-specific drivers of revenue and, if anything, the lack of both switching and routing product cycles that could mean below-trend growth. We also see rising interest rates as a challenge to Cisco's pseudo bond status among income- and value-oriented investors," equity analyst Rod Hall wrote in a note to clients.
This year, shares of Cisco are up 12 percent compared with a return of 11 percent for the , as investors hope that a string of recent acquisitions could boost earnings in spite of these headwinds.
