Auriga Upgrades Cisco (CSCO) to Buy

Auriga upgraded Cisco (NASDAQ: CSCO) to Buy with a price target of $20 (up from $16). The firm said they expect the company to regain momentum through a combination of improving product cycles, aggressive pricing and superior execution.

The firm stated, "Our analysis shows that CSCO is now well positioned to gain market share in key segments like switching, routing and servers in both enterprise and service provider segments from competitors like HP (NYSE: HPQ) (Buy) and Juniper (Nasdaq: JNPR) (Buy). We are still modeling modest 6%-7% top-line growth to account for weaker macro trends, but expect CSCO to outgrow the competition over the next year. While we expect continued gross margin erosion due to aggressive pricing from CSCO and increased competition, opex restraint should still lead to stable/rising operating margins. Our FY12/FY13 estimates are above consensus and we recommend aggressive buying at current levels ahead of the upcoming analyst day."



For more ratings news on Cisco click here and for the rating history of Cisco click here.

Shares of Cisco closed at $15.88 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Wolfe Research Upgrades Sarepta Therapeutics (SRPT) to Outperform
• Keefe, Bruyette & Woods Upgrades The Bancorp (TBBK) to Outperform
• Kepler Cheuvreux Upgrades Viaplay Group AB (VPLAYB:SS) to Buy