Goldman Sachs Upgrades Cisco to “Conviction Buy”; Says Fundamentals Have Turned Positive (CSCO)
Networking equipment maker Cisco Systems, Inc. (CSCO) on Thursday caught a huge upgrade from analysts at Goldman Sachs.
The firm added CSCO to its prestigious “Conviction Buy” List with a $24 price target, suggesting a massive 40% upside to the stock’s Wednesday closing price of $17.16.
Goldman noted that recent channel checks indicate company fundamentals are inflecting to the upside. The analyst also pointed to CSCO’s stronger competitive position, and noted it believes concerns over its software-defined networking (SDN) unit are overdone.
Cisco shares rose 57 cents, or +3.3%, in premarket trading Thursday.
The Bottom Line
Shares of Cisco Systems (CSCO) have a 1.86% dividend yield, based on last night’s closing stock price of $17.16. The stock has technical support in the $15 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.
Cisco Systems, Inc. (CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.
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