This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Cisco Wows Wall Street

Updated from 2 p.m.

Cisco (CSCO - Get Report), the sleeping 800-pound gorilla of networking gear, is showing signs of new vitality.

At least that's what one analyst concludes after sitting through the company's state-of-the-business presentation this week, and ruminating on the company's big gamble last month to take a leading role in the future of TV.

Upgrading Cisco to a buy after more than a year with a neutral rating, JPMorgan Chase analyst Ehud Gelblum says the San Jose, Calif.-based tech giant has shown a willingness to throw some of its cash around to climb out of its router rut.

Cisco is in the second day of its annual investors' pep rally, during which business heads pitch their go-to market strategies and estimate their addressable opportunities. All good stuff, to be sure. Cisco also reiterated its 2006 sales growth target, which is somewhere between 10% and 15%.

All the skits and charts and demos, along with the $5.3 billion deal last month for cable-kit maker Scientific-Atlanta (SFA), suggest Cisco isn't content with its stagnant showing of recent years.

"We finally see Cisco breaking out of the revenue growth box it has been in for the past 18 months," says Gelblum in a research note Tuesday.

No question, investors see video as the next big thing on the Net, and Cisco certainly plays a part in that. But with its bid for Scientific's set-top box and video-delivery infrastructure business, Cisco is shifting its strategy a bit.

The SFA deal shows a "willingness on Cisco's part to go on the offensive and attack top line growth in new markets rather than sit back and play defense around its core switching and routing platforms," writes Gelblum.

Cisco shares rose 22 cents to $17.78 Wednesday. The stock, which fetched $80 at the height of the Internet building boom, has been stuck in the high teens for 18 months.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
CSCO $30.12 2.10%
AAPL $129.30 0.65%
FB $79.50 0.67%
GOOG $559.42 0.18%
TSLA $196.56 -3.30%


DOW 18,255.07 +122.37 0.67%
S&P 500 2,112.44 +7.94 0.38%
NASDAQ 4,994.6170 +31.09 0.63%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs