Cisco investors might want to lighten up: Barron's

NEW YORK (Reuters) - Now that shares in network equipment leader Cisco Systems Inc (CSCO.O: Quote, Profile, Research) have risen almost 38 percent since last October, investors "might want to consider lightening up" on the stock, according to Barron's.

The October 1 edition said it might be time for investors to look for "less fashionable stocks" as they have already taken into account the benefit to Cisco of rising Internet video traffic.

Barron's said Cisco trades at about 21 times analyst estimates for 2008 earnings, above its median level for three years and up from a multiple of about 18 a year ago.

The report also said Cisco would likely invest in new opportunities such as video-conferencing and emerging markets rather than "paying shareholder dividends anytime soon."

Cisco stock closed at $33.12 on Nasdaq on Friday, well above its year-low of $22.80, reached on October 3.

(Reporting by Sinead Carew email)