Goldman Sachs Maintains Top Rating on Cisco (CSCO), Says Shares Sould 'Re-Rate' at 12x P/E

August 16, 2012 6:51 AM EDT Send to a Friend
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Price: $23.78 +0.89%

Rating Summary:
    31 Buy, 19 Hold, 3 Sell

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    Up: 24 | Down: 28 | New: 14
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Goldman Sachs reiterated its Conviction Buy List rating and $24 price target on Cisco (NASDAQ: CSCO) following solid Q4 results after the close and a 75% dividend hike, representing a yield of 3.1%.

The firm noted book-to-bill is "comfortably above one" and a 16% yoy increase in backlog suggests improving visibility. The firm also said the dividend hike should help narrow the valuation discount.

Goldman sees shares re-rating 12x P/E, in-line with other large-cap tech companies like IBM and Intel.

The firm adjusted FY13 EPS from $1.65 to $1.53 and FY14 from $1.79 to $1.66.

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 $17.35 yesterday.


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