Cisco Systems upgraded to "market outperform"

10.08.06 - JMP Securities

NEW YORK, August 10 (newratings.com) - Analysts at JMP Securities upgrade Cisco Systems (CSCO) from "market perform" to "market outperform," while raising their estimates for the company. The 12-month target price is set to $23.

In a research note published yesterday, the analysts mention that the company has posted its F4Q EPS from operations ahead of the estimates and the consensus. Cisco Systems' backlog improved significantly during the quarter, a trend that is expected to continue throughout FY07, the analysts say. The company is generating robust free cash flows and aggressively undertaking stock buybacks, JMP Securities adds. There is about 33% upside to Cisco Systems' share price over the next one year, the analysts mention. The EPS estimate for FY07 has been raised from $1.19 to $1.26 to reflect reduced taxes and robust revenue growth.