Barron's gets bullish on Cisco

The stock "could return 20% over the coming year, not because the competitive threat isn't real, but because the stock's valuation appears to factor it in, and then some," Jack Hough writes, in a bullish article on Cisco (CSCO).

Hough notes that the "new threat" to CSCO is software-defined networks, and although "SDNs are largely in a proof-of-concept stage" with widespread adoption still years away, "some 20% of CSCO customers by then could be tempted to try commodity gear."

Despite reduced guidance and competitive headwinds, Barron's suggests the shares are just too cheap to pass up: "[The company] doesn't have to remove all doubts about its shares to rebound 20%," Hough concludes.

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Comments (15)
  • micium
    , contributor
    Comments (115) | Send Message
    Be patient. Wait 6 months until it goes to 18.
    11 Jan 2014, 08:39 PM Reply Like
  • getshorty
    , contributor
    Comments (563) | Send Message
    And then stays there for another ten years.
    12 Jan 2014, 01:51 AM Reply Like
  • Rico59
    , contributor
    Comments (430) | Send Message
    Counting CSCO out is a newbie's mistake
    12 Jan 2014, 12:01 PM Reply Like
  • PostScience
    , contributor
    Comments (78) | Send Message
    In ten years, it will have something like $30 in cash per share.
    12 Jan 2014, 04:28 PM Reply Like
  • PChan444
    , contributor
    Comments (514) | Send Message
    I like that Cisco song where he goes thong thong thong thong thong
    11 Jan 2014, 10:57 PM Reply Like
  • Continental Kid
    , contributor
    Comments (239) | Send Message
    CSCO is a power house...4 billion a month in revenue......3 percent yield....tons of cash......a lower than market avg PE.....outside of John Chambers...there is no reason not to own it....and I don't believe even his presence will hold the stock down.......if looking for value it's here.....long CSCO......


    Best of luck to all...
    12 Jan 2014, 07:24 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6511) | Send Message
    not too many value tech stocks left, but this is clearly one of them. Presenting a low risk ,high reward scenario.
    12 Jan 2014, 09:49 AM Reply Like
  • v38134
    , contributor
    Comments (240) | Send Message
    There is a risk of stock falling below current level .... returns are not that great and dividend growth is yet to be confirmed....


    MSFT & CSCO are in bad books of individual investors for long time....
    I guess if/when Steve/John steps down...stock will take off ...


    Long : MSFT , CSCO
    12 Jan 2014, 10:44 AM Reply Like
  • jjmc2001
    , contributor
    Comments (1358) | Send Message
    I agree with part of your statement, I view it as a low risk, mediocre reward scenario. I think CSCO will be fine if the tech sector and overall economy both move forward. Assuming that happens I think CSCO will perform just OK but not a high reward.
    12 Jan 2014, 07:02 PM Reply Like
  • Tradevestor
    , contributor
    Comments (5014) | Send Message
    Bingo, Mark. You may want to check this one out
    13 Jan 2014, 09:55 AM Reply Like
  • Mark Krieger
    , contributor
    Comments (6511) | Send Message
    it is about time they got bullish on these folks. I will sell my holdings at $30!
    12 Jan 2014, 01:33 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (10536) | Send Message
    added CSCO in Dec @ 20.58 , my selection for 2014 "dog of the dow" award'
    25-30% upside from this level..

    12 Jan 2014, 01:53 PM Reply Like
  • manfredthree
    , contributor
    Comments (3158) | Send Message
    In the rapidly changing technology environment for networks and networking, CSCO needs to be nimble handling fast but uncertain change. That is difficult with a 120 billion cap. These transitions are heavily dependent on enterprise/institutional/ government capex which can be slow and lumbering in a growth constrained world. Its a very mixed bag of money availability and spending priorities with the major transitions in progress- network build-outs, on-line retail, and government spending etc . As well, the NSA stuff added a small but long term breeze in the face. Chambers is doing a great job as the job itself takes greater clarity. A panicky CEO could really destroy this large but fragile flower.
    12 Jan 2014, 03:03 PM Reply Like
  • frank paxman
    , contributor
    Comments (1667) | Send Message
    Long CSCO with little in the way of expectations. Bought for the divvy and additional diversification. I'd add more at $20 or below.
    12 Jan 2014, 04:00 PM Reply Like
  • Tony Pow
    , contributor
    Comments (8176) | Send Message
    They need to have 4G LTE. I own about 4 times CSCO than my regular bet. They're doing great more due to right entries.
    12 Jan 2014, 11:55 PM Reply Like
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