Barclays Adjusts Estimates & PT on Cisco (CSCO); Dividend Raise Overshadowed Sluggish Sales

Barclays maintains an 'Overweight' on Cisco (NASDAQ: CSCO) price target of $22.00 (from $21.00).

Analyst, Jeff Kvaal, said, "Cisco's plan to return >50% of FCF overshadows minimally acceptable sales growth: Cisco now carries the highest dividend yield in large cap tech, which should drive a re rating. Anemic sales growth should have been better, but may set the stage for modest 2H12 outperformance. Our CY13 EPS rises from $1.95 to $2.00 on the NDS acquisition."

Kvaal Call: Healthy cash return and modest upside to EPS should re-rate the shares.

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 $17.35 yesterday.

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