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Cisco Basks In Post-Earnings Analysts' Nods

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Shares of Cisco (CSCO) - Get Report gained on Friday after better-than-expected fiscal first-quarter earnings and sales spurred several analysts to raise their one-year price targets.

Cisco shares gained more than 7% after the network equipment maker said it earned 76 cents a share in its fiscal first quarter, above consensus forecasts of 70 cents. Sales fell 9.6% to $11.9 billion, though came in slightly above analysts' forecasts.

The results coupled with an “improved tone” from management on the company’s accompanying conference call prompted several Wall Street analysts to adjust their one-year price targets on Cisco slightly upward.

Piper Sandler analyst James Fish edged his one-year price target to $45 from $44 on what he described as a “low quality beat” on “better than feared” results, while RBC Capital Markets analyst Robert Muller raised his one-year target to $49 from $48 on “strong” sequential recovery in product orders and “surprising” commercial results.

KeyBanc in its own assessment noted that while “tone” on demand for Cisco’s products and services appears to have improved, a still-lagging product cycle upswing ahead of a Covid-19 recovery remains elusive.

The bank didn't provide an updated rating or price target, though KeyBanc analyst Alex Kurtz in April downgraded Cisco to a hold with a one-year price target of $41.50.

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