Cisco Systems "outperform," estimates raised

30.05.07 - Robert W. Baird

NEW YORK, May 30 (newratings.com) - Analysts at Robert W Baird maintain their "outperform" rating on Cisco Systems Inc (CSCO), while raising their estimates for the company. The target price is set to $32.

In a research note published this morning, the analysts mention that the company completed the acquisition of WebEx for $2.9 billion on May 25. The acquisition is expected to be neutral to Cisco Systems? EPS in FY08 and EPS accretive by $0.01 in 2008, the analysts say. The acquisition would enable the company to expand its Unified Communications portfolio and gain exposure to the emerging Software-as-a-Service segment, Robert W Baird adds. The EPS estimate for 2008 has been raised from $1.60 to $1.61.