Oppenheimer Upgrading Cisco (CSCO)

Oppenheimer & Co. is upgrading Cisco Systems, Inc. CSCO to Outperform from Perform, and has a $23 price target on shares. In a note sent to clients, Oppenheimer writes, "We're upgrading Cisco to Outperform from Perform and setting a $23 price target. We've been concerned with Cisco's ability to maintain its strong position in the switching market as well as in other segments for some time. But based on our detailed analysis, we believe our revised and current consensus estimates now appropriately reflect share losses in almost every business category with the exception of UCS and collaboration. With a bearish view finally built into our and consensus estimates and shares approaching trough valuation levels, we believe Cisco's shares are compelling at current levels. Negative headlines (Fed/Europe/macro turmoil, tougher competition, share losses) are potential headwinds, but sentiment is so bad, we believe an opportunity to own Cisco is upon us." Shares of CSCO are up 23 cents in pre-market trading to $19.30, a gain of 1.2% this morning.