Oppenheimer Maintains an 'Outperform' on Cisco (CSCO); INTC & IBM Data Point To Strong Romley Upgrade Cycle
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Price: $48.32 +0.44%
Rating Summary:
28 Buy, 28 Hold, 1 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
28 Buy, 28 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Oppenheimer maintains an 'Outperform' on Cisco (NASDAQ: CSCO) price target of $23.00.
Analyst, Ittai Kidron, said, "Intel (Nasdaq: INTC) and IBM (NYSE: IBM) provided clear data points that the Romley upgrade cycle is strongly under way. Just one month after its launch, Romley has shipped nearly twice the volume of its predecessor (Nehalem) at the same point in its ramp. Also, as expected, IBM's server sales declined YoY, indicating a pause related to the Romley-based server qualification-process. Per our thesis, we expect Romley to trigger a 10GbE upgrade cycle in the DC-switch market, specifically in the top-of-rack segment.
We expect the growth of the Ethernet switch market to accelerate from 2-3% in 2012 to 9-10% in 2013-2014. This is the key to our bullish view on Cisco which calls for acceleration in Cisco's YoY revenue growth rates vs. consensus."
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 $20.08 yesterday.
Analyst, Ittai Kidron, said, "Intel (Nasdaq: INTC) and IBM (NYSE: IBM) provided clear data points that the Romley upgrade cycle is strongly under way. Just one month after its launch, Romley has shipped nearly twice the volume of its predecessor (Nehalem) at the same point in its ramp. Also, as expected, IBM's server sales declined YoY, indicating a pause related to the Romley-based server qualification-process. Per our thesis, we expect Romley to trigger a 10GbE upgrade cycle in the DC-switch market, specifically in the top-of-rack segment.
We expect the growth of the Ethernet switch market to accelerate from 2-3% in 2012 to 9-10% in 2013-2014. This is the key to our bullish view on Cisco which calls for acceleration in Cisco's YoY revenue growth rates vs. consensus."
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 $20.08 yesterday.
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