Cisco (CSCO) Seen Taking Share From Competitors Over Next 2 Years
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Up: 17 | Down: 14 | New: 17
Rating Summary:
28 Buy, 28 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Cisco (Nasdaq: CSCO) could be poised to take share from competitors over the next 2 years, according to analysts at Deutsche Bank. Based on field research, analysts say Cisco’s upcoming refresh of its datacenter switching and telco core routing platforms set the company up to take share from peers such as Juniper (NYSE: JNPR), Hewlett-Packard Company (NYSE: HPQ), Dell Inc. (Nasdaq: DELL), Alcatel-Lucent, S.A. (NYSE: ALU), Huawei, and ZTE.
"We see Cisco in a 'share-taking' mode in CY13/14 – based on our field research suggesting that Cisco’s upcoming refresh of its datacenter switching and telco core routing platforms (anticipated sometime this year) could be a basis for single-digit share gains and design win gains at its top-tier enterprise, Web 2.0, and telco customers," said analyst Brian Modoff.
In core routing, Madoff said Cisco's CRS-3 platform could be disruptive. Regarding data center switching, Modoff's research suggests a structural transition underway in IT datacenters – from the three-tier top of rack, aggregation and core switch to a two-tier Leaf Spine architecture.
"While Leaf Spine could be disruptive for Cisco to take share from Juniper, Brocade (Nasdaq: BRCD), HP, etc, it could also expose the company to growing competition from the merchant silicon switching vendors –many of whom currently offer Leaf Spine switching solutions using Broadcom (Nasdaq: BRCM) or Intel (Nasdaq: INTC) silicon," added Modoff.
Deutsche Bank has a Buy rating on Cisco (NASDAQ: CSCO) with a price target of $22.00.
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 $21.06 yesterday.
"We see Cisco in a 'share-taking' mode in CY13/14 – based on our field research suggesting that Cisco’s upcoming refresh of its datacenter switching and telco core routing platforms (anticipated sometime this year) could be a basis for single-digit share gains and design win gains at its top-tier enterprise, Web 2.0, and telco customers," said analyst Brian Modoff.
In core routing, Madoff said Cisco's CRS-3 platform could be disruptive. Regarding data center switching, Modoff's research suggests a structural transition underway in IT datacenters – from the three-tier top of rack, aggregation and core switch to a two-tier Leaf Spine architecture.
"While Leaf Spine could be disruptive for Cisco to take share from Juniper, Brocade (Nasdaq: BRCD), HP, etc, it could also expose the company to growing competition from the merchant silicon switching vendors –many of whom currently offer Leaf Spine switching solutions using Broadcom (Nasdaq: BRCM) or Intel (Nasdaq: INTC) silicon," added Modoff.
Deutsche Bank has a Buy rating on Cisco (NASDAQ: CSCO) with a price target of $22.00.
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 $21.06 yesterday.
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