Cisco Systems, Inc. (NASDAQ:CSCO) investors appeared to be somewhat upbeat ahead of the earnings announcement that is scheduled after the bell on Wednesday. There could be two reasons for it. One is that the company’s security business has been a factor to reckon with and the other is that the latest threat from Wannacry worm anti-virus could allow it to get a pound of flesh.
Though Cisco Systems shares are not in the league of sudden surge or drop, the company’s performance has been consistent over a period of time. The company rarely misses the Street expectations and its EPS provided positive surprise between 1.80 percent and 5.0 percent in the last four quarters. Also, a few days before, Morgan Stanley has upgraded the stock to an Overweight rating suggesting that the future looks solid.
Cisco could experience deceleration from its commercial business. However, the company has been taking initiatives to compensate this by focusing on new segments like cybersecurity and cloud computing. For instance, the company announced its decision to acquire a startup firm Viptela Inc. for $610 million enabling it to focus on cloud-based management of networks spread in multiple areas, which is also called as wide-area networks. One of the positives is that the company is not averse to acquiring startups to add revenue stream if not immediately but in the upcoming period.
Street analysts expect the company to deliver an EPS of 58 cents and revenue of $11.9 billion. Significantly, analysts have not reduced or increased their estimations in the last three-month period.
In all, there are thirty analysts who have given their opinion on Cisco shares. Significantly, 21 of them preferred a Buy rating while eleven analysts have rated it as Hold one. The consensus price target is about $35.20.
The following analysts have given their opinion recently on Cisco Systems shares in the current month.
- CFRA maintained its Hold rating and price target of $35.
- Drexel Hamilton reiterated its Buy rating and target price of $40.
- Morgan Stanley upgraded the stock to an Overweight rating from Equal weight and lifted the price objective to $39 from $33.
- RBC reiterated its Outperform rating and price target of $37.
- BMO Capital Markets downgraded the stock to Market Perform from Outperform and reduced its price tag to $35 from $37.
- Robert W Baird reiterated its Buy rating on the stock.
On Tuesday, the stock gained 0.20 percent in the regular trading hours and further 0.29 percent in the extended hours trading.