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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cisco Preview: What Wall Street's Saying

Stocks in this article: CSCO

UBS analyst Amitabh Passi (Buy, $26.50 PT)

"As we have written before, we believe Cisco still has levers it can pull to enhance returns and better manage the key transitions around cloud, mobile, social. ROIC, ROE took a step down in 2008-2009, and employee productivity has declined from the peaks in CY1H12. While ROE is now hovering at ~20%, we believe further workforce rationalization and supply chain optimization, as well as a more software-centric mix, is required to enhance returns (see charts in note). In addition to a focus on costs, we believe Cisco can reaccelerate sales growth over the next few qtrs via product ramps (ACI, NCS, 40g (bi-di)), a greater focus on SMB, and penetrating new multi-billion dollar markets e.g. packet-optical (NCS 4k). Cisco's cloud (Intercloud) and SaaS strategy need to be further firmed up, with M&A in software, services, analytics, IoE being key."

Goldman Sachs analyst Simon Jankowski (Buy, $29 PT)

"We expect Cisco’s results and guidance to be in line to modestly above consensus, with book to bill above one, as the company begins to see the benefits of its switching and routing product cycles. We expect further acceleration into 2H, aided by easy comps and improving end demand in the enterprise and public sector verticals."

Credit Suisse analyst Kulbinder Garcha (Underperform, $20 PT)

"We forecast F4Q14 revenues of $12.1bn (-2% y/y, 6% q/q) and EPS of $0.53 compared to consensus revenues of $12.1bn and EPS of $0.53. Cisco will be challenged by macro conditions in emerging markets and the emergence of SDN will create continued headwinds for the company. We reiterate our Underperform and $20 price target."

Wells Fargo analyst Jess Lubert (Outperform, $27 to $29 PT)

"We expect Cisco to report solid FQ4 results, with continued strength in North America and Europe likely to more than offset ongoing challenges in the emerging markets. We think margins are likely to at least meet our estimates behind improved volumes and stable pricing. Despite geopolitical uncertainty in several emerging markets and the potential to see lumpiness in the service provider vertical, we believe strong execution, the ramp of several important new products and improved enterprise conditions in the developed theatres should enable the company to guide in line with consensus for the seasonally difficult October period. Importantly, with Cisco likely to return to growth over the next few quarters, and the stock continuing to offer an attractive combination of valuation and yield, we continue to see value in the name at current levels."

--Written by Chris Ciaccia in New York

>Contact by Email.

Follow @Chris_Ciaccia

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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