UPDATE: BMO Capital Markets Reiterates Cisco Systems at Outperform on Impressive FQ1

In a report published Tuesday, BMO Capital markets reiterated its Outperform rating on Cisco Systems Inc. CSCO following impressive FQ1 results that beat consensus estimates, and maintained a price target of $22. BMO Capital Markets noted, "CSCO defied expectations and delivered a solid quarter and marginally better guidance. We could nitpick on the gross margin outlook and CSCO is clearly not out of the macro woods yet, but the execution in the quarter was impressive and the comments on US enterprise spending should lift the entire networking group. We continue to view shares of CSCO as undervalued and look for the strong showing to help narrow the valuation gap. We rate Cisco shares at Outperform and are maintaining our price target of $22, which represents 10x our CY13 FCF estimate of $2.16." Cisco Systems closed at $16.85 on Tuesday.