Nomura Securities Maintains a 'Buy' on Cisco (CSCO); Reducing 2012/13 Estimates

May 10, 2012 11:04 AM EDT
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Price: $30.07 --0%

Rating Summary:
    32 Buy, 25 Hold, 2 Sell

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Nomura Securities maintains a 'Buy' on Cisco (NASDAQ: CSCO) price target of $22.00.

Analyst, Stuart Jeffrey, said, "Revenue risks undo margin momentum, yet macro heavily priced in. Despite the strong margin performance, management’s revenue guidance missed expectations by 3% and its EPS guidance by 8% at the mid-point of guidance. Cisco cites increased caution at enterprise customers driven by EU and broad macro concerns that may take some time to ease. We have reduced our 2012E/2013E EPS from $1.89/$2.11 to $1.83/$2.01. If macro trends deteriorate further then further downside to estimates seems likely. At current multiples (9.1x CY12E vs MSCI US at 13.3x), we believe a significant further decline in earnings is priced in. Buy retained – relative on macro decline, absolute if macro improves."

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 $18.78 yesterday.

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