One financial analyst who's not worried about Cisco's business outlook

UBS Warburg may have downgraded Cisco stock Thursday citing slowing orders and softness in U.S. and European enterprise markets, but on the same day, an analyst at Friedman, Billings, Ramsey gave Cisco an "outperform" coverage. According to an Associated Press report, FBR analyst Brian Coyne said demand for Cisco networking gear would continue at a pace faster that its competitors, and that its large size would allow it to move aggressively into new markets. And echoing what as been said before, a weaker economy could enable Cisco to pick up a bargain acquisition.

However, according to the AP:

Coyne said current profit estimates by other analysts may be too optimistic given the likely economic slowdown. He assigned Cisco a price target of $31. He predicted per-share earnings of $1.52 in fiscal year 2008 and $1.66 in 2009 - below Wall Street expectations.

Some would say a large company is too cumbersome to move aggressively into a new market. I guess Coyne likes to put a positive spin on the negative.

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