Baird analyst Jonathan Ruykhaver downgraded Cisco Systems (CSCO) to Neutral from Outperform with an unchanged price target of $48.

The stock closed Tuesday down 8c to $48.05.

The current COVID-driven environment could lead to a de-emphasis on the corporate network, which would be a headwind to Cisco, Ruykhaver tells investors in a research note. The shift to work from home highlights the benefits of shifting away from the corporate network, and recent signs of success from cloud infrastructure services companies validate the opportunity, says the analyst.

As a result, Ruykhaver sees Cisco's risk/reward as more balanced at current share levels given "secular and macro concerns."