RBC Affirms Cisco (CSCO) at 'Outperform' Amid New salesforce.com Partnership
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RBC affirms Cisco (Nasdaq: CSCO) with an Outperform rating and $35 price targe after the company and Salesforce announced a strategic alliance to enable business users to be more productive than ever before.
The firm commented today:
We recently caught up with Cisco to talk through two recent news items: 1) the debt raise and 2) salesforce.com alliance. Overall, we view both announcements as slight positives, the debt raise ($6.25 billion) allows the Company to bring more cash onshore (pays off the ~$4.1B in debt coming due in March 2017) and the salesforce.com transaction should be a positive catalyst for Jasper. Net Net: while the news announcements are not thesis changing moments, we view them as slight positives for the company as it increases cash flexibility and shows positive Jasper Momentum.
The two companies will now jointly develop and market solutions that include Cisco's collaboration, IoT and contact center platforms with Salesforce Sales Cloud, IoT Cloud and Services Cloud. We view this as a slight positive for the Jasper piece of the business particularly as the company continues to grow its software portfolio.
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