Analysts Playing Catch-Up in Cisco Systems (CSCO)
Cisco Systems (CSCO) is now trading up 9% at $27.40 pre-market after beating earnings yesterday. It has already traded about 6 million share pre-market and CSCO shares will likely be the most active of the large-cap tech names today. CSCO…
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Cisco Systems (CSCO) is now trading up 9% at $27.40 pre-market after beating earnings yesterday. It has already traded about 6 million share pre-market and CSCO shares will likely be the most active of the large-cap tech names today. CSCO posted $0.31 EPS vs $0.29 estimates and revenues of $8.18 Billion vs $7.9 Billion estimates. It also raised its guidance on an organic basis and on a post-Scientific Atlanta basis. CSCO put Q4 at 24% to 25% revenue growth instead of a 21% growth indicated, and 14% to 15% on a pre-Scientific Atlanta basis instead of the original 10% to 15% range previously given.Yesterday we noted that Cisco was above the call of duty and that analysts would have to play catch-up in the stock today. These are just a sample of the analyst calls on CSCO shares today, although there are essentially 15 calls out and more will be out later in the morning:A.G.Edwards target raised to $31.00.Banc of America raised its target to $30.00.Goldman Sachs raised its target to $35.00.JMP Securities target raised to $29.00.Pacific Crest target raised to $30.00.Piper Jaffray target raised to $28.00.UBS raised its rating to Buy and raised target to $32.00.The average stock price target going into earnings in August was $23.00+. The target going into earnings yesterday was $26.00 or thereabouts. It appears as though the new price target average on teh street is going to settle in at about $28.00+. That is actually only about 3% higher than pre-market levels, so we’ll have to see if the stock gets more follow-on calls in the coming weeks from the same firms or if the stock settles in to some levels. Stay tuned.Jon C. OggNovember 9, 2006
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