Cisco Systems stock is slipping on a generally upbeat day for tech stocks, after Raymond James analyst Simon Leopold turned cautious on the networking-equipment giant amid concerns about slowing demand.
He also asserts that while Cisco’s pending $28 billion acquisition of Splunk makes strategic sense, it reduces the company’s options at a time when competitive pressures are mounting in particular in the security-software sector. Newsletter Sign-up The analyst writes that channel checks find Cisco should have a strong October, but he sees risks further out.
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