Cisco slips as Citi sees supply chain headwinds going into Q4; favors Arista, Juniper
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Cisco (NASDAQ:CSCO) slipped on Monday as investment firm Citi said the company is likely to face more headwinds than peers like Arista Networks (NYSE:ANET) and Juniper Networks (NYSE:JNPR) as the company gets set to report its fiscal fourth-quarter later this week.
Analyst Jim Suva, who has a sell rating on Cisco (CSCO) shares and a $40 price target, noted that supply chain issues have adversely impacted the company and its market share losses are "accelerating."
"We believe competitors have been able to procure more parts than Cisco, which is hurting Ciscoâs sales and market share," Suva wrote in a note to clients, while adding that the company is also facing tougher year-over-year comparisons and orders are "materially slowing."
Cisco (CSCO) shares fell 0.5% to $46.39 in premarket trading.
Citi expects Cisco to report earnings of 81 cents per share and $12.7B in revenue during the quarter, down 3.3% year-over-year. Meanwhile, analysts estimate the company will earn 82 cents per share and $12.73B in revenue. 
San Jose, California-based Cisco (CSCO) is scheduled to report fourth-quarter results after the close of trading on August 17.
Suva added that Cisco (CSCO) does not have any issues with cash flows or going concerns over the business, but it's likely that the stock will trade lower as its multiple falls due to inventory issues and market share losses to Arista (ANET) and Juniper (JNPR).
Last week, Cisco (CSCO) disclosed that it was hacked by an unknown entity in May, but said with "moderate to high confidence" that the attack came from a group with links to the UNC2447, Lapsus$ and Yanluowang ransomware operators.