UPDATE: Cisco Shares Up ~1% Following Deutsche Bank Upgrade
In a report published Tuesday, Deutsche Bank analyst Brian Modoff upgraded Cisco Systems (NASDAQ: CSCO) from Hold to Buy and raised the price target from $25.00 to $30.00 following Cisco Live.
Modoff wrote, “A mosaic view from our meetings with the networking IT channel, IT buyers, and senior management at Cisco Live gives us conviction on a stronger than anticipated ramp of Cisco's new platforms in Datacenter Switching, Next Gen Routing and Security, Wireless, and Cloud IT Services – heading into the FY-end Jul Q and into FY15+.”
The analyst sees solid order bookings trend for the Nexus 9k datacenter switch and projects gross margin for the Nexus 9k in the mid-60s range. Deutsche Bank added that the company is gradually improving NGN routing sales and see +100 percent year-over-year booking growth for Meraki Cloud IT Services and prospects for new 802.11ac WLAN products in 2H14.
With improving macro-economic growth heading into the second quarter, the analyst raised estimates, and thus the price target to $30.00.
Shares of Cisco Systems closed at $24.52 on Friday and are currently trading at $24.75, up 0.94 percent.
Latest Ratings for CSCO
|Dec 2014||Bank of America||Maintains||Buy|
|Dec 2014||Wedbush||Initiates Coverage on||Outperform|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.