27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
Cisco Systems, Inc. (NASDAQ:CSCO) has multiple upcoming product cycles that span more than 35% of its product revenue, according to BofA Securities.
The Cisco Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Tal Liani upgraded Cisco Systems from Neutral to Buy and raised the price target from $48 to $55.
The Cisco Thesis
Cisco’s numbers are likely to bottom out in the fourth quarter, and growth rates may subsequently improve, with easier compares and a cyclical recovery, Liani said in a Tuesday upgrade note. (See his track record here.)
Growth hit a low of negative 7.5% in the third quarter of 2020, and the company is likely to return to a positive growth rate of about 4.4% in the second quarter of 2021, the analyst said.
Upcoming product cycles could generate accelerated growth, he said.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
“5G could drive better growth in routing reversing multiple years of secular declines; Optical and Ethernet 400G technology could drive data center switching and routing growth; and a WiFi 6 upgrade cycle, new products for cloud titans, and a bolstered optical portfolio that includes 400ZR and pluggables should also drive growth.”
These initiatives could add over $1.5 billion to Cisco’s revenue by 2022, Liani said, adding that he expects the stock valuation to expand once these cycles materialize.
CSCO Price Action
Shares of Cisco Systems were up 2.51% at $46.49 at the time of publication Tuesday.
Related Links:
'Connecting The Dots': Former Cisco CEO John Chambers Details Lessons In Leadership, Life
Benzinga's Top Upgrades, Downgrades For June 10, 2020
Photo by Helpameout via Wikimedia.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.