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Monday, Aug 12
Cisco keeps rallying ahead of FQ4 report; analysts upbeat
- Cisco (CSCO +1.1%) is near its 52-week high after Goldman's Simona Jankowski becomes the latest in a line of analysts to make upbeat comments ahead of the networking giant's Wednesday FQ4 report.
- Jankowski, who is raising her PT to $30 from $28: "We expect Cisco to report a solid F4Q quarter on improving enterprise networking demand, higher carrier capex, and strong execution, with EPS upside aided by better gross margins." She also forecasts FY14 rev. growth of 6.9% (above a 5.5% consensus) on the back of solid Ethernet switch, Wi-Fi, and UCS server sales.
- JPMorgan upgraded Cisco to Buy on Friday, citing improving enterprise IT demand and rebounding government orders. UBS lifted its PT to $28.50 on Thursday, citing healthy router/Wi-Fi sales and encouraging earnings news from suppliers. Deutsche raised its PT to $28 last Monday.
- Cisco +36% YTD. After backing out $35B in net cash/investments, shares trade at 9x FY14E EPS.