Nomura Securities Maintains a 'Buy' on Cisco (CSCO); Q2 Review
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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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Nomura Securities maintains a 'Buy' on Cisco (NASDAQ: CSCO) price target of $24.00.
Analyst, Stuart Jeffrey, said, "Q2 results beat expectations by 2% on revenues, 46 basis points on gross margin and 4 cents on EPS. Revenues were boosted by surprising strength in service providers (orders +12% yoy), with Cisco clearly taking share from Juniper in the quarter. Gross margins were boosted by improvements in switching and routing to levels last seen two years ago, offset in part by strong growth in UCS, service provider video, wireless and security. EPS was further boosted by an earlier-than-expected completion of restructuring, taking opex down 4% sequentially. Management stressed that investors should not raise their full-year estimates for Cisco. No concrete reasons were given to support this caution, other than the fact that visibility remains limited, that federal spending is likely to decline and that service provider spending remains uncertain. Our estimates rise just 5c for FY12 and 2c for FY12 to $1.89 and $2.11, respectively. Despite our 10% EPS growth forecast for 2013, the stock is trading on 10.9x our CY 2012 and 9.2x our CY 2013 estimates. These multiples represent a discount of between 22% and 31% the market multiple despite similar growth rates."
For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.
Shares of Cisco closed at $20.43 yesterday.
Analyst, Stuart Jeffrey, said, "Q2 results beat expectations by 2% on revenues, 46 basis points on gross margin and 4 cents on EPS. Revenues were boosted by surprising strength in service providers (orders +12% yoy), with Cisco clearly taking share from Juniper in the quarter. Gross margins were boosted by improvements in switching and routing to levels last seen two years ago, offset in part by strong growth in UCS, service provider video, wireless and security. EPS was further boosted by an earlier-than-expected completion of restructuring, taking opex down 4% sequentially. Management stressed that investors should not raise their full-year estimates for Cisco. No concrete reasons were given to support this caution, other than the fact that visibility remains limited, that federal spending is likely to decline and that service provider spending remains uncertain. Our estimates rise just 5c for FY12 and 2c for FY12 to $1.89 and $2.11, respectively. Despite our 10% EPS growth forecast for 2013, the stock is trading on 10.9x our CY 2012 and 9.2x our CY 2013 estimates. These multiples represent a discount of between 22% and 31% the market multiple despite similar growth rates."
For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.
Shares of Cisco closed at $20.43 yesterday.
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