Cisco (CSCO) Kicks Off 2012 With a Bang After Big Wall Street Upgrade
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Price: $109.59 -0.87%
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
Rating Summary:
35 Buy, 27 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 40
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Shares of Cisco (Nasdaq: CSCO) are having a good start to the new year after picking up a new fan.
JP Morgan upgraded shares of the networking giant from Neutral to Overweight and raised its price target from $19 to $21.
In the report, JPMorgan analyst Rod Hall argues that Cisco encountered a "perfect storm of multiple small issues" in 2011. This is unlikely to repeat itself in 2012 as many of these small problems have been addressed, he says.
In addition, Hall said the firm's proprietary analysis of 30 US Federal agency budgets implies that spending will increase in FY'12 after being down in FY'11. This may act as a tailwind for Cisco, the firm said.
"We believe Cisco represents a relatively safe haven for communications equipment investors," Hall states.
Shares of Cisco are up 4.3 percent to $18.80 in early action Tuesday.
JP Morgan upgraded shares of the networking giant from Neutral to Overweight and raised its price target from $19 to $21.
In the report, JPMorgan analyst Rod Hall argues that Cisco encountered a "perfect storm of multiple small issues" in 2011. This is unlikely to repeat itself in 2012 as many of these small problems have been addressed, he says.
In addition, Hall said the firm's proprietary analysis of 30 US Federal agency budgets implies that spending will increase in FY'12 after being down in FY'11. This may act as a tailwind for Cisco, the firm said.
"We believe Cisco represents a relatively safe haven for communications equipment investors," Hall states.
Shares of Cisco are up 4.3 percent to $18.80 in early action Tuesday.
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