FBR Capital Upgrades Cisco; Raises Price Target (CSCO)

FBR Capital Upgrades Cisco; Raises Price Target (CSCO)

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FBR Capital reported on Monday that it has raised its rating on technology company, Cisco Systems, Inc. (CSCO).

The firm has upgraded CSCO from an “Underperform” to “Market Perform,” and has raised the company’s price target from $17 to $19. This price target suggests a -9% decline from the stock’s current price of $21.10.

An analyst from the firm commented, “(1) As a result of SDN overlay solutions gaining more traction than we expected, a portion of the near-term pressure on traditional routing and switching could be pushed out a quarter or two. (2) Competitive threats from SDN based start-ups have declined as Nicira, Big Switch, and Embrane appear to have, for several reasons, become less disruptive. (3) Investor expectations around 2013-2014 service provider capex, in our opinion, has started to moderate. (4) Cisco appears to be gaining momentum with, and is likely to announce significant portions of, its “SDN/NFV-focused” platforms over the next six to eight weeks.”

Cisco shares were mostly flat during premarket trading Monday. The stock is up 7% YTD.

The Bottom Line
Shares of Cisco Systems, Inc.(CSCO) have a 3.22% yield, based on Friday’s closing price of $21.10.

Cisco Systems, Inc. (CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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