Cisco (CSCO) Stock Higher, Drexel Hamilton Issues Bullish Note
Bloomberg News
NEW YORK (TheStreet) -- Shares of Cisco (CSCO) - Get Report are rising 0.51% to $29.58 late Tuesday afternoon as Drexel Hamilton reiterated a "buy" rating and $36 price target on the stock.
Yesterday, Cisco CEO Chuck Robbins delivered the opening keynote at the Cisco Live event in Las Vegas and the company announced new innovations focusing on security.
"Given Cisco's excellent execution in recent quarters, expanding product portfolio, 3.5% dividend yield, a cash rich balance sheet and a depressed valuation...we believe the stock represents an attractive value with defensive characteristics and has further upside potential," Drexel Hamilton wrote in an analyst note.
The security market has been an increasingly important priority for the company in recent years and yesterday's announcement highlights further integration of security into the network, according to the firm.
Additionally, Cowen reiterated an "outperform" rating and $39 price target on Cisco stock and said gross margins can drive profitability.
"We continue to see opportunity for Cisco to drive over 64% gross margin and over 31% operating margin (both pro forma, excluding employee stock compensation expense) over the next several years," the firm wrote in a note cited by Barron's.
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Separately, TheStreet Ratings Team has a "Buy" rating with a score of A- on the stock.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CSCO