In a research report issued today, Deutsche Bank analyst Brian Modoff maintained a Buy rating on Cisco Systems (NASDAQ:CSCO) with a $32 price target, which implies an upside of 16% from current levels.

Modoff noted, “CSCO introduced Multigigabit speeds on their Catalyst 4500E, 3850, and 3560 series Campus Switches earlier this week. The new 2.5G and 5G speed switch ports (scaling to 10G in future) are designed to run Wireless LAN speeds of 2.5G and 5G – i.e. 802.11ac Wave2 standards.”

“We see gradually accelerating trends in Large Enterprise adoption of new 2.5G and 5G capable Wave2 WLANs as a positive catalyst for sales of CSCO’s newly launched Multigigabit Campus Switches – as we head into the Apr Q. The Multigigabit Campus Switches are “ASP and gross margin accretive” in our view, given CSCO noting the new 2.5G/5G Campus Switches would be priced at a sub 20% ASP premium versus current gen switches.”

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide.