Cisco Systems "outperform," target price raised

02.06.08 - RBC Capital Markets

NEW YORK, June 2 (newratings.com) - Analyst Mark Sue of RBC Capital Markets maintains his "outperform" rating on Cisco Systems Inc (CSCO). The 12-month target price has been raised from $27 to $29.

In a research note published this morning, the analyst mentions that the company has been witnessing improving order rates in some of its businesses, such as financial services. Cisco Systems is spending $50-$100 million per annum on more than a dozen new initiatives, which could boost its revenues going ahead, the analyst says. The company?s operations are growing in Asia, especially in India and China, RBC Capital Markets adds.