'Exhausted' Levers
Cisco's three main levers are "largely exhausted" in Jankowski's eyes:
- Server share gain are leveling off
- Expanding operating margins are at a 10-year peak
- Buybacks are poised to slow after the 24 percent increase in the dividend this year
The analyst's estimates remain the same. In the near- to intermediate-term Jankowski sees elevated risks. "We see heightened competitive pressure from a more focused HPE following its acquisition of Aruba last year," she said. As share gains in the servers segment weaken, they will not to be able to offset losses in networking anymore. Finally, execution risks have increased as the company has changed leadership "in virtually every business segment and C-level position," Jankowski stated.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.