Cisco Systems "outperform," target price raised

08.02.07 - Credit Suisse

NEW YORK, February 8 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Cisco Systems Inc (CSCO), while raising their estimates for the company. The 12-month target price has been raised from $31 to $35.

In a research note published yesterday, the analysts mention that the company has reported its F2Q07 revenues and pro forma EPS ahead of the estimates and the consensus. Cisco Systems is likely to continue benefiting from the convergence of both SPs and enterprises into IP infrastructure, the analysts say. This rising trend, along with the growing ATG contribution and recent SFA acquisition, should enable the company to achieve a five-year CAGR of more than 12%, Credit Suisse adds. The pro forma EPS estimates for FY07 and FY08 have been raised to $1.29 to $1.31 and from $1.52 to $1.56, respectively.