Even more noteworthy is the fact that not only are more corporations adopting the concept of BYOD in favor of the stringent and traditionally rigid enterprise guidelines, but as the chart above illustrates, by 2016, one-quarter of all mobile users will have at least two devices, of which almost 10% will have three or more connected to the global network. This certainly gives new meaning to the prevailing concerns of "net neutrality." It will also redefine mobile-device saturation.
So that means in a short four years, while Apple will likely have already peaked in terms of growth, Cisco would have just gotten started on an "Apple-like growth" to the extent where it reaches $60. This is reminiscent of the good old days of the tech bubble -- except this time, the valuation will be justified.
Bottom LineThe bottom line is, Cisco does not get enough credit on Wall Street for being a bit smarter than everyone else. As the market is now overly consumed with buzzwords such as "virtualization," "the cloud," "anytime/anywhere computing," "big data," etc., investors continue to discount one of the major players in Cisco, which has already prepared itself to service the needs of this increased level of traffic; essentially, it has skated to where the puck is going, just as Apple did five years ago.
On that note, although the cars being manufactured by Apple are selling exceptionally well, Cisco, by its recent investments, will soon own the roads, many of which will require strategically placed toll booths for access to wider lanes. Today, while Cisco trades at a paltry forward P/E of 10 -- unfitting for a tech company of its caliber, both growth and value investors should really consider this as an opportunity to make a play for a company that will triple its current valuation by reaching $60 in a few years.
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