Cisco Systems (CSCO) is 1.98% higher to $ 28.60 today after the German bank raised the price target to $ 32 from $ 30 and reiterated its buy recommendation. While historically correlated CSCO GDP share traded, argues Long term plus 50% of our call CISCO business growth, so that advanced services, data center switching, security and wireless capability grows 2x US.
GDP growth rate and the mid-60s, gross margins, see German banking said. Analysts during 2015 more modest expansion potential as Cisco Systems accelerates the transition of several of its business portfolio and network support services software revenue and recurring cloud. The stock has Mega Cap Top notion of Deutsche Bank.
A page from a better perspective of forward sales, we believe that service offerings cloud pull forward "sales of the hardware platform and are" architecturally sticky, suggesting the potential to gain market share from their peers, he added analysts. Regardless Equipment Reviews TheStreet rates CISCO SYSTEMS INC. as a purchase with a rating of A- Guest TheStreet Ratings team; this has to say about his recommendation:
We qualify CISCO SYSTEMS INC (CSCO) PURCHASE. This is due to the convergence of positive investment measures to help these people developed to overcome most of the people who qualify. The company's strengths can be seen in several areas such as revenue growth, attractive valuation, profit margins, financial position and results of most measures and performance expanded largely solid part with reasonable debt solid stock price. We believe these strengths outweigh the fact that the company subdued growth in net profit had.
Highlights from the analysis by TheStreet Ratings Team go as follows:
- CSCO's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for CISCO SYSTEMS INC is rather high; currently it is at 65.71%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.92% trails the industry average.
- Despite currently having a low debt-to-equity ratio of 0.37, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 3.03 is very high and demonstrates very strong liquidity.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.