Cisco Systems, Inc. (NASDAQ:CSCO) Excels Even In Tough Conditions


Dallas, Texas 08/15/2013 (Financialstrend) –  Cisco Systems, Inc. (NASDAQ:CSCO) will announce its July’s quarter results very soon. The results are anticipated to be out in a week, and it is anticipated by the analysts that they would see some large positive outcomes in the report. Analyst Simon Leopold, Georgios Kyriakopoulos and Victor Chiu, in their submitted reports to the investors, maintained their outperform rating on the stock and mentioned a rise in their price target from $26 to $30 per share.

Analysts at Raymond James believe that Cisco Systems will report the July sales on a high, indicating an increase between 4-7% even in the times of tough market conditions. However, the federal spending cuts may pose a threat to these heavy expectations and it is believed that the federal spending will improve by the month of October.

The analysts have praised the Cisco Systems Inc for the fact that even in an environment full of challenges and troubles. Cisco has outperformed all its competitors. This, according to the analysts, has been possible because of the market share gains that the company has managed, and at the same time, has kept the margins stable.

The analysts have also appreciated the company’s increased focus on software leading to a generation of $6 billion in software last year, and it is anticipated that to hit $12 billion within the next three to five years. The software focus in accordance with the analysts is not only good for the evolution of the company, but also for its margins. The company’s multiples are expected to expand in the coming times.

In the reports that come out next week, a few key issues like the carrier capital expenditure trends, impact of federal spending cuts on the company, long term growth of 5-7 per cent and the macroscopic environment will be closely analysed.