Ticonderoga Maintains a 'Buy' on Cisco (CSCO); Unveils the "120 Day Plan" to Get Back on Track in FY12
Tweet
Share
E-mailGet Alerts CSCO Hot Sheet
Price: $111.68 -1.58%
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Ticonderoga maintains a 'Buy' on Cisco (NASDAQ: CSCO), PT $28.
Ticonderoga analyst says, "This morning, Cisco Systems announced plans to restructure engineering, sales and services to better align these organizations with the company's key focus areas of the core (routing, switching and services), collaboration, video, data center virtualization & cloud and business transformation architectures. A majority of these changes will take place over the next 120 days. This restructuring follows a recent memo by John Chambers to increase accountability within the organization and return Cisco to a focus on its core businesses. Additionally, Cisco recently announced plans to restructure its consumer business. Essentially, we believe today's changes will make it easier for customers to work with Cisco, increase the company's focus on its core businesses, raise accountability within the organization and reduce bureaucracy. In our view, this represents another step in the right direction for Cisco."
"Given the theme of restructuring at Cisco in recent weeks, we believe the company can now drop its long-term sales growth target of 12-17% and 28-31% operating margin goal. Even if Cisco still believes the bottom end of these objectives could be achievable in a more normalized environment, we believe investors view these goals as an overhang on the stock price, and the sooner these targets are dropped, the better. Finally, we believe Cisco's recently announced dividend of $0.06 per quarter is a step in the right direction and represents a 1.3% dividend yield on the current stock price; however, we believe investors would like to see this double, but this will take a repatriation of overseas cash."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.47 yesterday.
Ticonderoga analyst says, "This morning, Cisco Systems announced plans to restructure engineering, sales and services to better align these organizations with the company's key focus areas of the core (routing, switching and services), collaboration, video, data center virtualization & cloud and business transformation architectures. A majority of these changes will take place over the next 120 days. This restructuring follows a recent memo by John Chambers to increase accountability within the organization and return Cisco to a focus on its core businesses. Additionally, Cisco recently announced plans to restructure its consumer business. Essentially, we believe today's changes will make it easier for customers to work with Cisco, increase the company's focus on its core businesses, raise accountability within the organization and reduce bureaucracy. In our view, this represents another step in the right direction for Cisco."
"Given the theme of restructuring at Cisco in recent weeks, we believe the company can now drop its long-term sales growth target of 12-17% and 28-31% operating margin goal. Even if Cisco still believes the bottom end of these objectives could be achievable in a more normalized environment, we believe investors view these goals as an overhang on the stock price, and the sooner these targets are dropped, the better. Finally, we believe Cisco's recently announced dividend of $0.06 per quarter is a step in the right direction and represents a 1.3% dividend yield on the current stock price; however, we believe investors would like to see this double, but this will take a repatriation of overseas cash."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.47 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- HSBC Downgrades Cisco (CSCO) to Hold
- Cantor Fitzgerald Reiterates Overweight Rating on Applied Materials (AMAT)
- Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
John Chambers, DividendSign 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!
