Cisco Gets an Upgrade
An SG Cowen analyst upped her investment rating on
Cisco
(CSCO) - Get Report
Monday, saying the company is primed to boost its overall sales, thanks to strength in its noncore business segments.
TST Recommends
Within the company's noncore business units, successful emerging technologies and the acquisition of
Linksys
have been recent positives for Cisco, said analyst Christin Armacost. For that reason, she sees the company sustaining revenue growth through 2005 in a range of about 10% to 15%. She raised her rating to strong buy from outperform. The emerging technologies include security, storage, wireless LAN and Voice-over-Internet protocol.
The analyst said she expects sales of $20.5 billion for 2004, up from a previous estimate of $20.1 billion. In 2005, Armacost sees revenue of $23.4 billion. She also sees pro forma EPS of 64 cents to 67 cents in 2004 and 80 cents in 2005.
Shares of Cisco were down 10 cents at $19.05 in early afternoon trading.
