Wunderlich Securities Reiterates Buy Rating, $28 PT on Cisco Systems Following In-Line Report

In a report published Thursday, Wunderlich Securities analyst Matthew S. Robison reiterated a Buy rating and $28.00 price target on

. In the report, Wunderlich Securities noted, “Cisco (CSCO) reported essentially in line, with guidance similar to our penny-below-consensus estimate for 1Q14. Book/bill was above 1, but not by enough to make up for earlier in the year and backlog (reported annually at year-end) was down $0.1 billion to $4.9 billion. Order patterns vary widely across regions and sectors (Fig. 3) with absence of consistent behavior outside the Americas. Management regards the overall tone of orders to be unsatisfactory in light of the spooky economic environment and plans to reduce headcount by as much as 4k/5%, though many may be re-assigned to functions that are more customer-facing, product oriented, or otherwise away from middle management. With the outlook in line with our prior model, our price target and Buy recommendation are unchanged.” Cisco Systems closed on Wednesday at $26.38.