Wunderlich Securities Sees Cisco Systems as On-Track with Order Improvement

In a report published Thursday, Wunderlich Securities analyst Matthew S. Robison reiterated a Hold rating and $24.00 price target on

. In the report, Wunderlich Securities noted, “Cisco (CSCO) reported F3Q14 with better-than-expected contribution from core Switch and Router product segments. Product mix and cost discipline yielded 30 basis points of sequential operating margin improvement to 28.1%, nearly as strong as F3Q13 and above the guidance range of 26.5%-27.5%. This performance and backlog generation likely puts the company on track to achieve 2014E results toward the high end of the $1.95-$2.05 target EPS range given earlier this year. Though decline was not as severe as we expected, overall variance is not large in percentage terms. With our earnings forecast largely unchanged, there is no change to our $24 price target or Hold rating.” Cisco Systems closed on Wednesday at $22.81.