Sterne Agee Maintains Buy, $25 Target on Cisco

Sterne Agee reiterates its Buy rating and $25 target price on Cisco CSCO ahead of the company's earnings report next Wednesday, which is expected to present in-line performance and guidance amid improved competitiveness. Sterne Agee says, "Based on our checks into the networking supply chain from components to contract manufacturers to distribution, we believe the company will post a decent quarter about in-line or better than consensus at $11.2 billion in revenue and $0.43 in EPS (Sterne Agee in-line at $11.1 billion and $0.40 in EPS). This compares to its guidance of $11.1-11.2 billion in revenue and $0.42-$0.44 in EPS. Whereas some players like JNPR have missed expectations, our channel and customer feedback indicate that part of the reason is likely because CSCO continues to operate with more confidence and aggressiveness, making it tougher for competitors." CSCO closed at $19.65 a share on Tuesday.