Cisco Systems "outperform," target price raised

30.01.07 - RBC Capital Markets

NEW YORK, January 30 (newratings.com) - Analysts at RBC Capital Markets reiterate their "outperform" rating on Cisco Systems Inc (CSCO), while raising their estimates for the company. The target price has been raised from $29 to $30.

In a research note published yesterday, the analysts mention that the company is poised to benefit from the increased spending on IPTV & video in the cable and telco market in 2H07 and early 2008. Cisco Systems is likely to achieve the upper-end of its long-term growth rate of 10%-15% in 2007 and 2008 due to higher-than-historic levels of the new markets that the company is addressing, the analysts say. The EPS estimate for FY08 has been raised from $1.49 to $1.55 to reflect the higher demand for the routers and the switches by the North American carriers.