Cisco Systems "buy," target price raised - update

03.10.06 - A.G. Edwards & Sons

NEW YORK, October 3 (newratings.com) - Analyst Aaron C Rakers of AG Edwards maintains his "buy" rating on Cisco Systems Inc (CSCO). The 12-18 month price objective has been raised from $25 to $27.

In a research note published yesterday, the analyst mentions that Cisco Systems? momentum seems to have continued into the October quarter and there is greater confidence in the company?s ability to generate revenue growth at the high end of the targeted range of +10-15% over the forthcoming several quarters. The analyst adds, however, that Cisco Systems? share price could come under pressure on account of its recent appreciation, unfavourable macroeconomic conditions and a potential decline in the company?s book-to-bill ratio in the current quarter. Cisco Systems? long-term momentum is likely to continue, AG Edwards adds.