Cisco (CSCO) Likely To Outperform Large Cap Tech, Raymond James Reiterates Outperform

June 20, 2019 8:02 AM EDT
Get Alerts CSCO Hot Sheet
Price: $55.74 +0.09%

Rating Summary:
    32 Buy, 22 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 22 | Down: 26 | New: 45
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Raymond James analyst Simon Leopold reiterated an Outperform rating and $60.00 price target on Cisco (NASDAQ: CSCO) after performing a deep dive on the company as he nears his 20th year of coverage. The shift to a software focus and unusual cash generating ability keeps him at a Buy rating but it should be viewed as an investment vehicle rather than a trading vehicle.

The analyst stated "The foundation of our thesis focuses on the culture that allows it to evolve. The strategy includes simultaneous investment in R&D and acquisitions. Further, its core competency stems from its sales channel and marketing prowess. In the current environment, we like the transition to a more softwarecentric business model, the opportunities arising from multi-cloud, and continued strong traffic growth. Considering its size and breadth, we see Cisco's results as linked to the macro economy, but it has shown the ability to outperform. Recent reports from other vendors exposed to similar customers have suggested slowing enterprise demand; Cisco is not immune, but may fair better than others".

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 $57.00 yesterday.

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