Cisco Systems, Inc. (NASDAQ:CSCO): Several firms changed their ratings and price targets on Cisco Systems’ shares; recently, Cisco Systems’ Sector Perform rating was reiterated by analysts at RBC Capital, which now gives the stock a a $20.00 price target. Furthermore, Cisco Systems’ Buy rating was reiterated by analysts at MKM Partners, and the company was downgraded by analysts at JPMorgan Chase from an Overweight rating to a Neutral rating. Currently, they have given a $17.00 price target on the stock, which has fallen from its previous $21.00. They wrote, “To be clear, we’re not making a call on FQ1’13, but do believe FQ2’13 guidance is likely to disappoint and expect 2013 to be a tough year as macro pressures persist (weak enterprise and gov’t spending, Europe, etc.). We also believe longer term SDN and competitive risks will keep a lid on Cisco’s P/E multiple. With the shares likely range bound for the foreseeable future, we see little reason to be Overweight and are moving to the sidelines. We believe battered telco equipment names like Ciena and smartphone and tablet geared Qualcomm look incrementally better for 2013.”
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Citigroup Inc. (NYSE:C): The Federal Reserve has altered its annual set of tests for the 30 largest U.S. banks that are to incorporate the risk of a more serious decline in Asia, where Citigroup Inc. is more present than competitors. Euro recession, including the U.K. and Japan are features of the Fed’s “severely adverse” scenario in the new test, and the biggest difference from the previous year is that there is a more substantial slowdown in Asia that includes “a sizable weakening of economic activity in China,” the Fed stated yesterday. Citigroup, which is the third-largest U.S. bank, is the source of thousands of jobs spanning Asia. The company’s Chief Executive Officer Vikram Pandit, who is originally from Nagpur, India, pushed into markets spanning the continent, which makes credit-card, personal, and corporate loans in countries such as China, India and Singapore.
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