Ticonderoga Maintains a 'Buy' on Cisco (CSCO); Ready for Change and Taking Action; Time to Buy the Stock
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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
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Ticonderoga maintains a 'Buy' on Cisco (NASDAQ: CSCO), PT $28.
Ticonderoga analyst says, "Last night, Cisco reported 3QFY11 sales of $10.87 billion that were marginally above our estimate of $10.78 billion, while pro forma EPS of $0.42 exceeded our $0.36 projection and the Street's estimate of $0.37. The combination of axing unrealistic financial targets and taking full responsibility for Cisco's challenges over the past year, while outlining actions to simplify the company, announcing plans to trim costs by $1 billion and continuing to prune any underperforming businesses was a refreshing tone that we believe is setting up the early stages of a turnaround at Cisco. Given the combination of these steps taken by Cisco and a bottoming out in the company's sales cycle, we believe value investors should now begin buying the shares, which are trading at just 7.9x our CY11 pro forma EPS estimate (ex-cash)."
"We are reducing our 4QFY11 revenue projection slightly to $10.98 billion from $11.18 billion, but maintaining our pro forma EPS estimate at $0.39. For FY12, we are lowering our sales estimate to $46 billion from $47 billion but increasing our EPS estimate to $1.74 from $1.70 on cost-cutting initiatives."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.78 yesterday.
Ticonderoga analyst says, "Last night, Cisco reported 3QFY11 sales of $10.87 billion that were marginally above our estimate of $10.78 billion, while pro forma EPS of $0.42 exceeded our $0.36 projection and the Street's estimate of $0.37. The combination of axing unrealistic financial targets and taking full responsibility for Cisco's challenges over the past year, while outlining actions to simplify the company, announcing plans to trim costs by $1 billion and continuing to prune any underperforming businesses was a refreshing tone that we believe is setting up the early stages of a turnaround at Cisco. Given the combination of these steps taken by Cisco and a bottoming out in the company's sales cycle, we believe value investors should now begin buying the shares, which are trading at just 7.9x our CY11 pro forma EPS estimate (ex-cash)."
"We are reducing our 4QFY11 revenue projection slightly to $10.98 billion from $11.18 billion, but maintaining our pro forma EPS estimate at $0.39. For FY12, we are lowering our sales estimate to $46 billion from $47 billion but increasing our EPS estimate to $1.74 from $1.70 on cost-cutting initiatives."
For more ratings news on Cisco click here and for the rating history of Cisco click here.
Shares of Cisco closed at $17.78 yesterday.
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