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Davenport Upgrades Cisco Systems (CSCO) to Buy; Raises FY10 Estimates

November 5, 2009 12:40 PM EST
CSCO Hot Sheet
Rating Summary:
    25 Buy, 18 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 9 | New: 26
Davenport upgrades Cisco Systems (NASDAQ: CSCO) to Buy, price target $28.

Davenport analyst says, "We have increased confidence that Cisco’s business will continue to improve over the next eighteen months, with potential revenue growth of 9% year-over-year in fiscal 2011. We consider Cisco Systems attractively valued, with a free cash flow yield of 7.7% (based on actual 2009 free cash flow)...We estimate Q-2 10 operating EPS, excluding amortization and stock option expense, of $0.33 (based on the mid-range of Cisco’s guidance), a penny above the consensus estimate. We raised our fiscal 2010 GAAP EPS estimate from $1.04 to $1.16 and established a fiscal 2011 estimate of $1.28. We raised our fiscal 2010 revenue estimate from $35.8 to $37.39 billion (compared to the consensus estimate of $36.47 billion) and established a fiscal 2011 estimate of $40.8 billion, (9%+ year-over-year growth), compared to the consensus estimate of $40 billion."

To see more analyst ratings on CSCO Click Here.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP)-based networking and other products to the communications and IT industry worldwide.

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