Networking equipment maker Cisco Systems, Inc. (
) on Tuesday received some continued bullish commentary from
analysts at Nomura Securities.
The firm reiterated its "Buy" rating and $22 price target on
CSCO, which suggests a healthy 27% upside to the stock's Monday
closing price of $17.34.
A Nomura analyst commented, "Cisco is scheduled to report FQ4
earnings on Aug 15 after the close. We expect the company to
deliver results at least in-line with our estimates of $11.6bn in
revenues and 46c in earnings. While the demand environment has been
challenging, we believe it's already baked into Q4 expectations. We
believe gross margin should continue to come ahead of its 61-62%
guided range due to favorable regional mix (due to a weak China),
partially offset by an uptick in server revenues. We're raising
estimates to reflect the NDS acquisition. Our FY13 estimates are
increased to $4.96bn in revenues and $2.05 from $48.5bn/$2.01.
FY14E is increased to $53.3bn and $2.24 from $52.0bn/$2.19."
Cisco shares were mostly flat in premarket trading Tuesday.
The Bottom Line
Shares of Cisco Systems (
) have a 1.85% dividend yield, based on last night's closing stock
price of $17.34. The stock has technical support in the $15 price
area. If the shares can firm up, we see overhead resistance around
the $18-$19 price levels.
Cisco Systems, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.2 out of 5 stars.
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