Analysts at Citigroup (C) initiated their rating on Cisco with a "Sell" rating, accompanied by an $18 price target. The price target implies some 15% downside potential from Monday's closing levels.
Analyst Ehud Gelblum believes that Cisco's market share in the core routing business is at risk due to competition from Alcatel's new line up and "confusion" of new products being introduced by the company itself.
On top of that, Gelblum sees Cisco losing share in data center switching on the back of proprietary solutions from Insieme as the market is moving towards open systems. Combined, Cisco is expected to miss the 5-7% long-term growth trajectory.