Deutsche Bank: Half of Cisco's Business to Grow Exponentially

Deutsche Bank is bullish on Cisco Systems, Inc. CSCO, stating today that into the second half of FY15, 50 percent of the business could grow “2x or higher” compared with GDP. Those businesses – notably, Security, Services, WLAN, and Datacenter Switching – will also provide high gross margins.

Cisco is gaining more than 8 percent today following yesterday’s earnings report. Price is trading above $29 per share, the highest price since 2007.

Deutsche analysts are also pleased that Cisco is exiting underperforming products to “focus on growing Software and Services.” The analysts see a point or two of multiple expansion based on new product cycles. The firm has a price target of $33 per share.