Auriga Maintains a 'Buy' on Cisco (CSCO); Conservative Targets, Bullish Undertones

Auriga maintains a 'Buy' on Cisco (NASDAQ: CSCO) price target of $20.00.

Auriga analyst says, "We maintain our rating and price target for CSCO after the analyst day, as management gave conservative growth targets but sounded bullish on competitive positioning, streamlined operations and gross margins. We view CSCO's three-year, top-line growth target of 5%-7% and EPS of 7%-9% as conservative, perhaps reflecting the tough macro environment and also the company's desire to set a low bar going forward. We are also encouraged by management's confidence in terms of staying ahead of its key competitors in switch/router, video/collaboration and server markets. Gross margins also seem to be stabilizing due to renewed focus on cost reductions, total solution approach and also tailwinds from faster growing services business."

"Our FY12 estimate goes to $45.9bln/$1.80 from $45.8bln/$1.76 (consensus at $45.6bln/$1.72). And FY13 is now at $48.8bln/$1.95 from $49.0bln/$1.93 (consensus at $48.2bln/$1.88)."

For more ratings news on Cisco click here and for the rating history of Cisco click here.

Shares of Cisco closed at $16.35 yesterday.

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