Nomura Stays Bullish on Cisco Ahead of Earnings (CSCO)

By Staff,

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Networking equipment maker Cisco Systems, Inc. ( CSCO ) on Monday caught some further bullish commentary from anlaysts at Nomura Securities.

The firm reiterated its "Buy" rating on CSCO as well as its $24 price target, which suggests a 26% upside to the stock's Friday closing price of $19.12.

A Nomura analyst commented, "FQ3 preview; anticipating a slight beat, backed by enterprise. We expect Cisco to deliver slightly ahead of consensus estimates of $11.6bn in revenue and $0.47 in EPS when the company reports FQ3 results after the close on 9 May. We forecast a gross margin beat at 62.4% and we see scope for gross margin upside vs its 61-62% guidance and 61.9% consensus, driven by better product mix and margin improvement in APAC. We view gross margins as a key driver in CSCO's near-term investment case."

Cisco shares posted small losses in early trading Monday.

The Bottom Line
Shares of Cisco Systems ( CSCO ) have a 1.67% dividend yield, based on Friday's closing stock price of $19.12. The stock has technical support in the $17-$18 price area. If the shares can firm up, we see overhead resistance around the $20-$21 price level.

Cisco Systems, Inc. ( CSCO ) is not recommended at this time, holding a DARS™ Rating of 3.2out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: CSCO

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