On Wednesday, Shares of Cisco Systems, Inc. (NASDAQ:CSCO), lost -1.59% to $27.80, as Morgan Stanley downgraded the stock from Overweight to Equal Weight, and reiterated a $30 target price (TP). The firm cited higher research and development (R&D) expenditures, longer upgrade cycles, and valuation concerns as reasons behind the downgrade.
The team of analysts, led by James Faucette, stated that Cisco didn’t cut R&D costs, despite slower growth, and a flat profit pool. Mr. Faucette mentioned that other industry players have raised their R&D expenditure. The company is not in a position to reduce R&D, since it wants to retain its consumers. It contends that Cisco’s ability to gain operating leverage, or enhance return on investment (ROI), is limited. Hence, the analysts put a cap on valuation and multiple expansion.
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide.
Shares of Eldorado Gold Corporation (NYSE:EGO), declined -7.40% to $3.88, during its last trading session.
Eldorado Gold Corporation confirms that Hellas Gold S.A . – a Greek partner of the Company – has been made aware of a notification from Greece’s Ministry of Energy suspending the technical studies pertaining to the Skouries and Olympias projects in Halkidiki, northern Greece .
The suspension is based on testwork accomplished on the Olympias Phase III flash smelting process. This pilot scale test work was accomplished at Outotec’s comprehensive metallurgical and smelting facility in Finland , while the Ministry contends that it should have been done at site in Halkidiki.
The testwork is a part of the technical studies pertaining to both the Skouries and Olympias projects. The technical studies form the basis of a number of other permits required by the Company in order to proceed with the development and construction of the Skouries and Olympias projects. The Company is reviewing the notification of the Ministry with its technical and legal teams and will take legal action.
Eldorado Gold Corporation, together with its auxiliaries, engages in the exploration, discovery, development, production, and reclamation of gold properties, primarily in Brazil, China, Greece, Turkey, and Romania. It also explores for iron, silver, lead, zinc, and copper ores.
Finally, American Electric Power Co., Inc. (NYSE:AEP), ended its last trade with 0.91% gain, and closed at $58.80.
American Electric Power Company has named Stephan T. Haynes senior vice president - Planned Initiatives and Chief Risk Officer effective Aug. 3. Haynes, 54, was promoted from vice president - Planned Initiatives and Chief Risk Officer, a position he has held since January 2008. Haynes will continue to report to Brian Tierney, executive vice president and chief financial officer.
Haynes is responsible for all risk administration functions and also for planned analysis for new business opportunities. He also serves on the board of managers for the Transource and PATH Transmission joint ventures and formerly served as treasurer of the PATH, Electric Transmission Texas and Electric Transmission America joint ventures.
American Electric Power Company, Inc., a public utility holding company, engages in the generation, transmission, and distribution of electricity for sale to retail and wholesale customers.
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