TECH STOCKS: Cisco Among Tech Losses After Citigroup Says Sell

By Rex Crum, MarketWatch

SAN FRANCISCO (MarketWatch) -- Tech stocks wavered Wednesday, with Cisco Systems Inc. among the decliners after Citigroup started its coverage of the company with a sell recommendation and a list of concerns about the networking-equipment giant.

Cisco (CSCO) shares pulled back by almost 2%, to $20.84 after a team of Citigroup analysts set an $18-a-share price target on the company's stock, as part of a broad initiation of coverage of several tech companies. Citigroup cited issues such as Cisco losing market share in the data-center switching business as well as long-term competitive threats to its core networking business as reasons for its sell rating.

Citigroup also forecast long-term revenue growth for Cisco of just 3% to 5%, which is below the company's outlook for 5% to 7% growth.

Citigroup also set a sell rating on BlackBerry Inc. (RIMM). "Wind-down costs and purchase requirements make winding down BlackBerry expensive," and as its subscribers decline, sales from services should continue to falter as well, the brokerage said.

BlackBerry's shares fell by 3.4%, to $5.77 Wednesday.

It also issued a sell recommendation for Brocade Communications Systems Inc. (BRCD).

Among other stocks in the tech sector, Citigroup started coverage of Ciena Corp. (CIEND), Corning Inc. (GLW), Motorola Solutions Inc. (MSI), Garmin Ltd. (GRMN) , Ericsson (ERICY), Polycom Inc. (PLCM), Juniper Networks Inc. (JNPR) and Infoblox Inc. (BLOX) with neutral ratings, and set buy ratings on Qualcomm Inc. (QCOM), Riverbed Technology Inc. (RVBD), F5 Networks Inc. (FFIV) and Nokia Corp. (NOK) .

The Nasdaq Composite Index (RIXF) was having a rough go Wednesday, as it fell 21 points to 4,039. The Philadelphia Semiconductor Index (SOX) and the Morgan Stanley High Tech 35 Index (MSH) were both also in the red.

One notable gainer was Groupon Inc. (GRPN). The online daily deals and e-commerce company's shares rose 3.7%, to $10.40, as Wells Fargo Securities analyst Trisha Dill raised her rating on Groupon to outperform, or buy, from market perform. Dill also set a valuation range on Groupon's stock of $13 to $14 a share.

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