UPDATE: Stifel Nicolaus Increases PT to $23 on Cisco

Stifel Nicolaus reiterates its Buy rating on Cisco (NASDAQ: CSCO) and raises its price targe to $23 from $20 on expectations of solid results for the company's January quarter.

Stifel Nicolaus notes, "We expect Cisco to report better revenues versus guidance, with outperformance on the switching, UCS and unified communication side. Our checks show a stable pricing environment on the switching side. Additionally, due to HDD shortages, set top box sales likely underperformed. Consequently, we believe that the company is likely to exceed its gross margin guidance. Feedback has been generally positive on the orders side and consequently we expect the company to provide solid guidance for April."

CSCO closed at $19.80 a share yesterday.