Morgan Stanley Believes Return To Growth Looks Promising For Cisco Systems

In a report published Thursday, Morgan Stanley analyst James E. Faucette reiterated an Overweight rating and $30.00 price target on

. In the report, Morgan Stanley noted, “2015 product cycles set to solidify return to growth; margin improvement would demand attention. Cisco's refreshed product portfolio is finally seeing significant adoption, with switching returning to growth and security, wireless and data center all continuing to demonstrate double digit growth.Even as routing struggles,affected by SP spending slowdown, the next-generation routing platform continued to grow double digits. Gross margins and operating margins came in above expectations as the company benefited from positive product mix and operational efficiencies. As the company continues to return to growth, we think these operational efficiencies could potentially improve.” Cisco Systems closed on Wednesday at $25.11.