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Auriga Maintains a 'Buy' on Cisco (CSCO); Beat & Raise; See More Upside as Guidance Likely Conservative

February 9, 2012 1:26 PM EST
CSCO Hot Sheet
Rating Summary:
    25 Buy, 18 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 19 | Down: 18 | New: 27
Auriga maintains a 'Buy' on Cisco (NASDAQ: CSCO) price target of $24.00.

Auriga analyst says, "The 2FQ12 guidance is only slightly ahead of consensus estimate as management was cautious on uncertain macro trends, but we view it as conservative and see room for additional upside. CSCO seems to be clearly outperforming its peer group in multiple segments like servers, routers, video and collaboration; we expect the product cycle driven share gains to continue over the next several quarters. Gross margins came in flat and management sounded confident about keeping it stable, despite headwinds from an unfavorable product mix. Our analysis continues to show that CSCO's long-term growth and EPS targets are likely conservative as we see potential for 10%+ EPS growth over the next five years. Despite strong stock gains over the last few months, we see room for more upside on rising estimates and multiple expansion."

For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $20.43 yesterday, with a 52 week range of $13.30-$22.15.


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