Cisco Systems upgraded to "outperform"

07.02.07 - Robert W. Baird

NEW YORK, February 7 (newratings.com) - Analysts at Robert W Baird upgrade Cisco Systems Inc (CSCO) from "neutral" to "outperform," while raising their estimates for the company. The target price has been raised from $27 to $32.

In a research note published this morning, the analysts mention that the company has reported its F2Q operating EPS ahead of the estimates. Cisco Systems is benefiting from the emerging market growth rate of 40% y/y and the new and wider product offering, the analysts say. Given its expertise with respect to IP routing and Ethernet transport and services and its product breadth, Cisco Systems is likely to benefit from the robust broadband trends over the forthcoming few years, Robert W Baird adds. The EPS estimates for FY07 and FY08 have been raised from $1.29 to $1.32 and from $1.47 to $1.55, respectively.