UPDATE: Stifel Reiterates Buy Rating, Raises PT on Cisco Systems Ahead of July Quarter Report

In a report published Monday, Stifel analyst Sanjiv Wadhwani reiterated a Buy rating on

, and raised the price target from $28.00 to $30.00. In the report, Stifel noted, “Our Cisco checks have been positive this quarter. VARs we spoke with saw improved spending on the enterprise side, with many reporting high-single digit q/q growth. As a reminder, Cisco guided for 4-7% y/y growth (1% q/q at the midpoint) for the July quarter; we believe that guidance was conservative in order to build backlog exiting the July quarter. Near-term momentum is being driven by North America, with Cisco now posting 9-10% order growth in U.S. enterprise over the last three quarters. Overall, while there is still conservatism in spending, VARs are much more confident on their outlook. Government spending is a big variable, with many VARs expressing caution on a budget flush due to sequestration, though we have yet to see any real evidence of a big drop off in government spending.” Cisco Systems closed on Friday at $26.05.