Oppenheimer analyst Ittai Kidron weighed in today with a few insights on Cisco Systems, Inc. (NASDAQ:CSCO), as the networking giant will host next week an Investor Day at Cisco Live, its annual customer/channel event. The analyst reiterated an Outperform rating on Cisco shares with a price target of $32, which represents a potential upside of 8% from where the stock is currently trading.

Kidron noted, “Normally we don’t preview the event but this year we feel Cisco needs to deliver a new message to keep investors engaged for another leg in the stock. Specifically, we expect Cisco to (1) communicate how its business model has evolved (SaaS, services, recurring revenue, customer relevance) and its risk profile improved (visibility, predictability), (2) address the recent soft results in its data center switch business, and (3) let new CEO, Chuck Robbins, take more of the center stage. A vision for a new Cisco may not be forthcoming but it’s changing, an important point for management to deliver and for investors to understand.”

Bottom line: “Cisco remains the dominant networking vendor, with strong underlying fundamentals, given very strong traffic growth, data center consolidation and virtualization. We see Cisco as among the best positioned for the next-generation virtualized data center given its history of strong execution and M&A, product breadth, geographic diversity and scale advantages.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ittai Kidron has a total average return of 2.5% and a 50.0% success rate. Kidron has a 15.9% average return when recommending CSCO, and is ranked #1200 out of 3610 analysts.

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