RBC Capital Assumes Cisco (CSCO) at Outperform

RBC Capital assumes coverage on Cisco (NASDAQ: CSCO) with a Outperform rating and a price target of $31.00.

Analyst Mitch Steves commented, "Cisco is the market share leader in the overall network equipment market with ~50% share and a material cash balance of $54B (net cash of $36B). Despite its ~$50B in annual revenue, the company continues to see both top and bottom line growth along with incremental diversification away from legacy networking products. From FY11 to FY15, it has reduced its exposure to legacy switching and routing by 600bps (from 65% of revenue to 59%) and we anticipate this trend continuing. Net Net: Given our belief in the company's ability to maintain market share (potentially gain share) and a discounted valuation on an ex-cash basis, we would recommend the shares at this time with an emphasis on long-term value investors."

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 $27.70 yesterday.

You May Also Be Interested In

• UBS Starts Nuvama Wealth Management (NUVAMA:IN) at Buy
• Cisco Systems (CSCO) call put ratio 2.3 calls to 1 put into quarter results
• Freedom Broker Upgrades Willis Lease Finance Corp. (WLFC) to Buy