Networking equipment maker Cisco Systems, Inc. (
) on Monday caught some further bullish commentary from anlaysts at
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 (
) 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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2out of 5 stars.
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, as well as a detailed explanation of
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