Sterne Agee Maintains a 'Buy' on Cisco (CSCO); Positive on NDS Acquisition
Tweet Send to a FriendGet Alerts CSCO Hot Sheet
Price: $23.95 -0.25%
Rating Summary:
32 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 25 | New: 12
Rating Summary:
32 Buy, 15 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 25 | New: 12
Trade CSCO Now!
Sterne Agee maintains a 'Buy' on Cisco (NASDAQ: CSCO) price target of $27.00.
Analyst, Shaw Wu, said, "We view this deal favorably as it is margin and growth enhancing, not to mention helps advance the company's strategic initiatives. CSCO remains one of our top fundamental picks and we are buyers on weakness...From a financial perspective, NDS net margins look attractive in the 25% range vs. the CSCO corporate average of 21%, not to mention much higher than the 10% we estimate for the more commodity set-top box hardware business. We believe this is likely why CSCO commented that it expects this deal to be accretive in the first full year. In addition, CSCO gets to utilize the $47 billion in cash it has which is 90% overseas. This allows the company to invest without having to repatriate overseas cash and pay taxes."
"We continue to believe CSCO is an underappreciated turnaround story similar to what we have seen with Apple (Nasdaq: AAPL), IBM (NYSE: IBM), and EMC (NYSE: EMC) in the past."
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 $19.91 yesterday, with a 52 week range of $13.30-$20.49.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Shaw Wu, said, "We view this deal favorably as it is margin and growth enhancing, not to mention helps advance the company's strategic initiatives. CSCO remains one of our top fundamental picks and we are buyers on weakness...From a financial perspective, NDS net margins look attractive in the 25% range vs. the CSCO corporate average of 21%, not to mention much higher than the 10% we estimate for the more commodity set-top box hardware business. We believe this is likely why CSCO commented that it expects this deal to be accretive in the first full year. In addition, CSCO gets to utilize the $47 billion in cash it has which is 90% overseas. This allows the company to invest without having to repatriate overseas cash and pay taxes."
"We continue to believe CSCO is an underappreciated turnaround story similar to what we have seen with Apple (Nasdaq: AAPL), IBM (NYSE: IBM), and EMC (NYSE: EMC) in the past."
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 $19.91 yesterday, with a 52 week range of $13.30-$20.49.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Goldman Lowers PC Forecast and Warns of Aggressive Pricing at OEMs (HP) (DELL) (LXK) (QLGC)
- UPDATE: Cantor Fitzgerald Upgrades Cubist Pharmaceuticals (CBST) to Hold
- UPDATE: JPMorgan Cuts SodaStream (SODA) to Neutral, 'Stock No Longer Cheap'
Create E-mail Alert Related Categories
Analyst Comments, Mergers and AcquisitionsRelated Entities
Sterne Agee
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
