UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on Cisco Systems
In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on Cisco Systems (NASDAQ: CSCO), and slightly raised its price target from $20.00 to $21.00.
J.P. Morgan noted, “With a large increase in the dividend, we believe Cisco has taken another major step toward behaving more like the mature business that it is. In addition, revenues continue to come in stronger than expected while margins are hanging in well. Based on ongoing strong execution, se believe this positive momentum from Cisco's recent overhaul of multiple product lines can continue well into 2013. The macro situation is anything but clear, but John Chambers' commentary suggested that the US in particular has stabilized somewhat though we didn't think commentary was as clear on other regions. We doubt US stability will last long with Europe worsening rapidly, but we consider Cisco a safe tech harbor even in a worsening macro situation. Currently trading just ~7x our cash adjusted FY'13 EPS and now paying a dividend yield of ~3%, Cisco looks relatively attractive to us. Maintain Overweight.”
Cisco Systems closed on Friday at $19.56.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.