Analyst Downgrades Hit Cisco & Nike, Citing Valuation & Fundamental Headwinds

Investing.com -- Cisco Systems stock fell 3.0% in pre-open trading today after Morgan Stanley downgraded the networking giant from Overweight to Equal-Weight and reduced its price target to $120 from $135, a move that sent immediate shockwaves through the pre-market session. Morgan Stanley analyst Meta Marshall argued that the stock’s remarkable 43% gain over the past 12 months — far outpacing the S&P 500’s 14% advance — has pushed Cisco’s valuation to roughly 19 times forward earnings, now in l

Investing.com -- Truist cut its rating for Nike to Sell and kept its $29 price target on the stock in a note on Thursday, arguing that the sportswear giant’s recent rally does not reflect any improvement in the business.

“NKE shares are up 19% over the past ~month (vs S&P flat), which we believe reflects positive sector rotations rather than an improvement in underlying fundamentals,” analyst Joseph Civello wrote ahead of today’s open.

Over that period, Nike’s valuation has risen to 27 times e