NEW YORK (TheStreet) -- Shares of Cisco Systems Inc (CSCO) were climbing, up 0.48% to $29.22 in early market trading Wednesday, after analysts at Nomura and RBC Capital issued positive noted on the IT giant this morning.
TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio says, "I thought this Cisco piece by the Nomura analyst gave you a ton of reasons to BUY the stock not hold it and I would urge people to do so."
"He likes Arista and I get that, but Cisco's quarter was much better and I think incoming CEO Chuck Robbins will be terrific . The RBC piece recommending Cisco was much more rigorously argued," he added.
Nomura initiated coverage on Cisco with a "neutral" rating and a $32 price target.
Nomura analysts view Cisco as "well positioned to become the data center winner," given its vast customer base, vision, and execution.
Still, Nomura thinks shares may take a breather in the near term.
"However, we do expect Cisco to exploit pockets of faster growth or poor share, such as optical, security, and data center switching," the firm wrote in a note this morning.
"We await a better entry point on this long-term IT winner," Nomura added.
In addition, RBC Capital upgraded Cisco to "outperform" from "market perform." The firm also raised its price target to $33 from $31.
Cisco designs, manufactures, and sells Internet protocol-based networking and other products related to the communications and information technology industry.
The company also has a line of products for transporting data, voice, and video around the world, operating in the Americas, Europe, Middle East, Africa, Asia Pacific, Japan, and China. It is based in San Jose, Calif.
Insight from TheStreet's Research Team:
Cisco Systems is a core holding of Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. During the most recent weekly roundup, this is what Jim Cramer, Portfolio Manager & Jack Mohr, Director of Research - Action Alerts PLUS had to say about the stock:
Cisco Systems ( CSCO:Nasdaq; $29.31; 2,750 shares; 3.11%; Sector: Technology): Intangible assets in the form of brand equity, scale advantages, and meaningful customer switching costs give Cisco a durable competitive advantage in its core markets of switches and routers.
We expect the firm to remain a strong competitor for many years as it adapts to shifts in networking technologies while expanding the range of products it offers to address ongoing cloud and software-defined networking adoption. Cisco's dominance in data networking is clear. Its Ethernet switches and routers, which move data along local computer networks, are considered the gold standard by network managers.
The firm enjoys a 15%+ market share advantage in the number of port shipments over Hewlett- Packard ( HPQ), its most significant competitor. Cisco is viewed as a premium provider and as such, the firm extracts 50% more revenue per port than HP. While Huawei and Alcatel-Lucent ( ALU) have made recent inroads, Cisco still maintains a healthy global market share. Our target is $33.
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Separately, TheStreet Ratings team rates CISCO SYSTEMS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate CISCO SYSTEMS INC (CSCO) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, reasonable valuation levels and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
You can view the full analysis from the report here: CSCO Ratings Report