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Pro Analysis

Wall Street downgrades Cisco because of its ‘struggling’ router business

A Cisco logo is seen on a router.
Gleb Garanich | Reuters
A Cisco logo is seen on a router.

BMO Capital Markets lowered its rating for Cisco to market perform from outperform, citing increasing competition for the company's network router and switching products.

"We expect Cisco to continue to face competitive and secular challenges in its core switching and routing markets," analyst Tim Long wrote in a note to clients Monday. "We believe some of the challenges Cisco faces will stay in focus until recurring revenues are bigger. Share losses in switching and a struggling router market have made growth in the core businesses more difficult to attain."