Ahead of the Bell: Analyst:Cisco sell-off overdone

Shares of Cisco declined Wednesday to finish 5.7 percent lower at $21.58, and set a 52-week low of $21.54 earlier in the session. An RBC Capital Markets analyst cut his price target following comments from the company's chief executive on technology spending. Shares of the company have declined 15.5 percent so far this year.

Citi Investment Research analyst Paul Mansky, who rates the stock "Buy," acknowledged that fundamentals are unlikely to improve greatly until the company's April 2009 quarter, but said the weakness still presents an ideal time to buy the stock.

"We view the recent sell-off as a position-building opportunity for long-term investors," Mansky wrote in a client note.

According to Thomson Financial, 19 analysts rate the stock "Buy," while 11 rate it "Neutral" or the equivalent. One analyst rates the stock "Sell."

In May, Cisco posted a quarterly profit that topped Wall Street expectations, but the company still remains vulnerable to economic downturns when companies decide to hold the line on spending.