Cisco Systems "outperform," target price raised

09.02.06 - RBC Capital Markets

NEW YORK, February 9 (newratings.com) - Analyst Mark Sue of RBC Capital Markets reiterates his "outperform" rating on Cisco Systems Inc (CSCO), while raising his estimates for the company. The target price has been raised from $21 to $23.

In a research note published yesterday, the analyst mentions that the company has posted its EPS for the previous quarter marginally ahead of the estimates. Cisco Systems is likely to continue to witness earnings growth going forward, benefiting from the near-term trends associated with bookings in North America and better gross margins after the SFA deal, the analyst says. The non-GAAP EPS estimate for 2006 has been raised from $1.02 to $1.09.