Cisco Systems upgraded to "outperform"

08.02.06 - Robert W. Baird

NEW YORK, February 8 (newratings.com) - Analysts at Robert W Baird upgrade Cisco Systems Inc (CSCO) from "neutral" to "outperform," while raising their estimates for the company. The target price has been raised from $20 to $23.

In a research note published this morning, the analysts mention that the company has reported its F2Q revenues in-line with and EPS ahead of the estimates on account of higher-than-expected gross margins. Cisco Systems' better-than-expected Q3 guidance indicates that the company continues to witness robust order momentum, the analysts say. The company is poised to benefit from the next-generation communication trends across the globe, Robert W Baird adds. The EPS estimates for FY2006 and FY2007 have been raised from $1.01 to $1.04 and from $1.15 to $1.20, respectively.