Cisco CSCO Total Return Price Chart CSCO Total Return Price data by YCharts

Shares of Cisco ( CSCO) are off by about 4% in 2012.

Large tech companies such as Cisco are hoarding cash because of taxation policies that favor parking money abroad, according to analyst Mark Sue.

"Cisco and other large-cap technology companies have amassed large cash hoards overseas throughout the years because foreign cash is not taxed until it is repatriated back to the US. Cisco currently has $48.7 billion in cash and investments ($9.10 per share) of which $42.5 billion ($7.94 per share) is held overseas."

Companies have been lobbying Obama for a repatriation holiday similar to the one in 2004, where repatriated money was taxed at 5.25% instead of 35%.

A Republican win could mean that we take a step towards the territorial tax system where foreign earnings are not taxed when returned to the U.S. A democratic win would mean a new tax plan to tax foreign earnings at between 20 % to 35%, according to the report.

"For Cisco, we believe that investors are already discounting the value of the foreign cash balance due to the taxes associated with repatriation leading to a value of $6.32 per share in cash. A Republican win would mean a potential value of the cash of $9.10 per share, and a Democratic win would mean a value to the cash of between $7.51-6.32 per share, a difference of $1.59-2.78 per share higher with a Republican win."

The analysts expect Cisco to gain as much as 15% in the event of a Republican victory.

28 analysts rate the stock a buy, 14 a hold, 3 a sell or underperform rating.

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