Nomura Stays Bullish on Cisco Ahead of Earnings; Estimates Boosted (CSCO)

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Networking equipment maker Cisco Systems, Inc. ( CSCO ) 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 ( CSCO ) 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. ( CSCO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out 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 The NASDAQ OMX Group, Inc.

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Referenced Stocks: CSCO

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