MKM Partners analyst, Michael Genovese, I raise the su precio objetivo de Cisco Systems, Inc. (NASDAQ: CSCO) from € 24 to $ 26, while maintaining classification UN neutral on the stock. The revision in its precio objetivo is based on expected earnings por share (EPS) growth in fiscal year 2015 (FY15) and beyond.
Sr. Genovese justified his classification Neutral on the stock highlighting that the company has had year-over-year UN rate (YoY) growth of 1% or less for the three previous quarters, suggesting that its revenue growth is negligible (Since the 'company TÃtulos de UN turnover of $ 11.15 million, $ 11.54 billion, $ 12.35 billion correos por 2QFY14, 3QFY14 and 4QFY14, respectively).
The sell-side analyst revealed that it expects revenue for the company to show an increase of 2.7% year on year, while posting a relatively higher growth of 4.4% yoy in EPS. He said, with $ 31 billion in net cash, Cisco has self-help significantly drier than other competitors dust and probably be able to compensate for the weakness in revenue and protect forecasts BPA through buyback and OPEX cut.We are giving Cisco credit for an additional price -to-earnings (PE) and turn increase our future value (FV) is estimated at $ 26 to $ 24, based on 12 times our current Year 2015 (CY15) EPS forecast.
However, the analyst also explains his reason for maintaining a neutral stance on the company deals with some major risks to the global outlook of investors. These include:
• A slowdown in the macro environment that influence EPS estimates and stocks
• based on price competition
• The potential of new architectures of software defined networks affects Cisco in the long run
• The irregular demand in its geographical segments, which may affect EPS
The network equipment giant recorded a PSA for 4QFY14 of $ 0.55 and $ 0.54 for 1QFY15; touring for 2QFY15 EPS is $ 0.51. He had revenues of $ 12.35 billion and $ 12.24 billion in 4QFY14 and 1QFY15, respectively; their income carried 2QFY15 billion.Established is $ 11.76 in 1984, Cisco Systems Inc. is a multinational corporation headquartered in California that sells, designs and manufactures network equipment. It is expected that the company's failure to report its 2QFY15 helpful February 11, 2015.
According to statistics from Bloomberg, the 48 analysts covering the stock, 28 and 14 rhythm Buy recommend waiting. The average 12-month target price assigned by analysts is $ 28.42, reflecting an increase of 6.48% in today's trading level.Cisco fell 1.59% to close at $ 26.69 on Wednesday. The stock is currently trading at 0.79% to $ 26.9 at 21:57 ET.
