Cisco Systems and Hewlett Packard Enterprise face supply chain hurdles in 2022, according to analysts who downgraded the technology stocks on Tuesday. CSCO stock and HPE stock fell, though the Nasdaq rose.
Cisco faces increased competition from Arista Networks and Juniper Networks, Citibank analyst Jim Suva said in a report. "Current supply chain challenges are more of a headwind for Cisco than for the company's peers," he said.
Suva downgraded CSCO stock to sell from neutral.
In addition, ANET stock has gained traction in the corporate market versus CSCO stock. And, their rivalry is heating up in the cloud computing market.
CSCO Stock Drops
Cisco stock fell 2% to 51.82 on the stock market today. CSCO stock has retreated 17% in 2022.
Meanwhile, Morgan Stanley downgraded HPE stock to underweight from equal weight.
Morgan Stanley analyst Meta Marshall said supply chain tightness will buoy earnings in the near-term. But Marshall expects softening in orders in the second half of 2022, "triggering underperformance."
HPE stock fell 2.5% to 15.41 on Tuesday. Shares in the maker of computer servers, networking equipment and data storage gear are down 1% in 2022.
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