Cisco Systems "outperform," target price raised

09.05.07 - Credit Suisse

NEW YORK, May 9 (newratings.com) - Analyst P Silverstein of Credit Suisse maintains his "outperform" rating on Cisco Systems Inc (CSCO), while raising his estimates for the company. The target price has been raised from $35 to $36.

In a research note published this morning, the analyst mentions that the company has reported its F3Q07 pro forma EPS and revenues ahead of the estimates and the consensus. Cisco Systems? gross margins declined sequentially due to an increase in discounts and accelerating sales in SFA, the analyst says. The company has raised its revenue guidance for F4Q07 from $9.0-$9.3 billion to $9.2-$9.3 billion, broadly in-line with the estimates and the consensus. The EPS estimate for 2007 has been raised from $1.31 to $1.33.