Baird Raises Price Target on Cisco Systems (CSCO) Following In-Line 3Q
Baird reiterated an Outperform rating on Cisco Systems (NASDAQ: CSCO), and raised the price target to $32.00 (from $30.00), following the company's 3Q earnings report. CSCO reported revenue of $12.0 billion, in-line with consensus estimates. nNon-GAAP EPS of $0.57 was also in-line with consensus of $0.55. Management offered guidance of FQ4 revenue up 0-3% YoY, implying $12.4-$12.7 billion versus consensus of $12.4 billion. The company also targeted non-GAAP EPS between $0.59-$0.61 above consensus of $0.58.
Analyst Jayson Noland commented, "Management cited macro-economic challenges in its Enterprise segment but posted overall positive results and provided modestly upbeat commentary on the earnings call. We continue to view Cisco as better positioned than many investors fear relative to public cloud and software-defined solutions. Product gross margin was again very solid even after adjusting for the extra week. CSCO is our best value idea for 2016."
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Shares of Cisco closed at $26.72 yesterday.