Cisco Systems Inc (NASDAQ:CSCO) stock is trading higher by 1.5% in early session as Fahad Najam of MKM Partners started coverage on CSCO at Buy adding and says The ultimate “Flight To Quality” name within networking.
The firm stated “We are setting a Buy rating and $61 price target representing an upside of approximately 20% from CSCO’s closing stock price today of $51.60. We see a compelling risk-reward in CSCO shares. In our view, it has one of the best-in-class management teams at the helm in the entire networking sector and enjoys a deep bench of equally talented managers.
Our bullish thesis is based on: (1) CSCO’s operating model and thereby EPS and FCF trajectory tracking ahead of investor expectations, driven by an acceleration in CSCO’s transition to a software-based recurring revenue model and by increasing revenue contribution from higher-margin silicon components sales; (2) CSCO should see revenue growth ahead of investor expectations over the CY21-22 period driven by the macroeconomic recovery post-COVID-19 pandemic; (3) networking technology, and therefore CSCO’s value proposition, is becoming more critical not less to Enterprise customers as these enterprises shift their workloads to multiple Public Clouds; and
(4) our view of CSCO as a platform company with a core competency in driving innovation through acquisition, which should enable CSCO to continue to be a relevant networking technology supplier with time, even as technology trends shift. CSCO is a top franchise name in networking; with an established global platform and a core competency in driving innovation through acquisitions, CSCO should continue to drive long-term value for its shareholders.”
Editor in Chief.
Living in the era of dynamic tech change Alex decided to stay tuned in changes that make any person find comfort and adapt to new devices. Furthermore, gaming became his passion for spending leisure time with his close ones. Although, he has a degree in Business Administration (majoring in Finance) writing for technology and as well as finance has been one of the precious aspects of his life