Cisco Systems "buy," target price raised

13.09.06 - Banc of America

NEW YORK, September 13 (newratings.com) - Analyst Tim Long of Banc of America Securities reiterates his "buy" rating on Cisco Systems (CSCO), while raising his estimates for the company. The target price has been raised from $25 to $27.

In a research note published this morning, the analyst mentions that the company has begun reaping the benefits of its salesforce additions over recent quarters. Cisco Systems is expected to add 2,000 sales people during FY07, the analyst says. While enterprise and service provider markets are likely to continue to be robust, commercial and emerging markets are expected to lead the company?s growth, Banc of America Securities adds. The EPS estimates for FY07 and FY08 have been raised from $1.27 to $1.30 and from $1.46 to $1.51, respectively.