Cisco Systems Stock Rating Reaffirmed by Morgan Stanley (CSCO)
Cisco Systems (NASDAQ:CSCO)‘s stock had its “overweight” rating reaffirmed by investment analysts at Morgan Stanley in a note issued to investors on Friday. They currently have a $30.00 price objective on the stock. Morgan Stanley’s price objective would suggest a potential upside of 20.72% from the stock’s previous close.
The analysts wrote, “While we expect Cisco will continue to work through service provider spending pauses and emerging market sales struggles in the 1HFY15, we expect the refreshed product portfolio and focused sales force to help the company resume growth in FY15. We believe that if the new products are able to find good traction, that the bear case of tech disruption will be directly rebutted, leading to not only potential revenue and earnings upside, but also multiple expansion from its current ~10.5x FY16 EPS. Our $30 PT is based on ~12.5x our FY16 EPS estimate of $2.37.”
Cisco Systems (NASDAQ:CSCO) opened at 24.85 on Friday. Cisco Systems has a 52-week low of $20.22 and a 52-week high of $26.08. The stock’s 50-day moving average is $25.2 and its 200-day moving average is $23.79. The company has a market cap of $127.3 billion and a P/E ratio of 16.68. Cisco Systems also was the target of a significant decline in short interest in the month of August. As of August 15th, there was short interest totalling 63,934,683 shares, a decline of 11.4% from the July 31st total of 72,138,151 shares. Currently, 1.3% of the shares of the company are sold short. Based on an average daily trading volume, of 29,353,698 shares, the short-interest ratio is presently 2.2 days.
Cisco Systems (NASDAQ:CSCO) last released its earnings data on Wednesday, August 13th. The company reported $0.55 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.53 by $0.02. The company had revenue of $12.40 million for the quarter, compared to the consensus estimate of $12.14 billion. On average, analysts predict that Cisco Systems will post $2.16 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Wednesday, October 22nd. Stockholders of record on Thursday, October 2nd will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 3.06%. The ex-dividend date of this dividend is Tuesday, September 30th.
Other equities research analysts have also recently issued reports about the stock. Analysts at Zacks reiterated a “neutral” rating on shares of Cisco Systems in a research note on Thursday, August 14th. They now have a $26.00 price target on the stock. Separately, analysts at Sterne Agee raised their price target on shares of Cisco Systems from $26.00 to $28.00 in a research note on Thursday, August 14th. They now have a “buy” rating on the stock. Finally, analysts at Cowen and Company raised their price target on shares of Cisco Systems from $30.00 to $33.00 in a research note on Thursday, August 14th. Three research analysts have rated the stock with a sell rating, thirteen have given a hold rating and twenty have issued a buy rating to the company. Cisco Systems currently has a consensus rating of “Hold” and an average target price of $26.60.
In other Cisco Systems news, EVP Wim Elfrink sold 25,000 shares of Cisco Systems stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $24.94, for a total transaction of $623,500.00. The sale was disclosed in a filing with the SEC, which is available at this link.
Cisco Systems, Inc (NASDAQ:CSCO) designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology (IT) industry and provide services associated with these products and their use.
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