Cisco Systems "overweight," target price raised

10.11.06 - Prudential Financial

NEW YORK, November 10 (newratings.com) - Analysts at Prudential Financial maintain their "overweight" rating on Cisco Systems Inc (CSCO), while raising their estimates for the company. The target price has been raised from $24 to $26.

In a research note published yesterday, the analysts mention that the company has reported its revenues and EPS for the latest quarter ahead of the consensus due to broad-based strength. Cisco Systems' results were driven by the robust performance of the Switching unit, the analysts say. Prudential Financial expects the company to post its revenue growth for FY07 at the high-end of the guidance range. The EPS estimates for FY07 and FY08 have been raised from $1.16 to $1.21 and from $1.40 to $1.45, respectively.