Cisco Systems "outperform"

02.10.07 - Credit Suisse

NEW YORK, October 2 (newratings.com) - Analysts at Credit Suisse maintain their "outperform" rating on Cisco Systems Inc (CSCO). The 12-month target price is set to $38.

In a research note published yesterday, the analysts mention that Cisco Systems is expected to continue benefiting from convergence onto IP infrastructure by enterprises and SPs, in view of the company?s robust position in the IP communications segment. This convergence, along with the rising contribution of ATG and the SFA acquisition, is expected to lead to higher growth at Cisco Systems relative to the consensus, Credit Suisse says. Bain Capital?s recent acquisition of 3Com is unlikely to present significant incremental risks to Cisco Systems, the analysts add.