Wells Fargo Raises Valuation Range on Cisco (CSCO), Sees Guidance as Conservative

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CSCO Hot Sheet

Rating Summary:
25 Buy, 18 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
Up: 22 | Down: 8 | New: 36

Wells Fargo reiterated its Outperform rating on Cisco (NASDAQ: CSCO) and lifted its price valuation range from $21-$23 to $23-$25 following another strong quarter.

The company announced strong Q2 results as sales beat expectations. The company's restructuring also helped contribute to upside in gross margin, operating margin and in earnings. Wells Fargo highlights the lift in its quarterly dividend is also a positive sign.

An analyst at the firm comments, "While investors may be disappointed to see the midpoint of the FQ3 outlook only slightly exceed consensus following better-than-expected FQ2 results, we think this reflects conservatism and sets the stage to see upward revisions to ests in coming qtrs. As a result, we continue to recommend purchase of Cisco shares."

For FY12 and FY13, the firm has raised its EPS estimates from $1.80 and $1.99 to $1.86 and $2.02.

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 $20.43 yesterday, with a 52 week range of $13.30-$22.15.

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