Wedbush analyst Scott Thompson weighed in with his thoughts on Cisco Systems, Inc. (NASDAQ:CSCO) following the company’s annual Analyst Day in San Diego, CA. During the two-day long conference, Cisco’s CEO, John Chambers, spoke about his visions for the company in-light of the ever changing business environment. The analyst reiterated an Outperform rating on the stock, and raised the price target to $34 (from $31.50). Shares of CSCO are currently trading at $28.89, up $0.23, or 0.80%.

Thompson observed, “We believe Cisco’s best-in-class sales organization and increasingly nimble and innovative culture give it a strong platform for success. Nevertheless, we recognize that these strengths could be challenged to breach barriers to entry in some of the markets it hopes to enter where incumbents have entrenched relationships. In the near term, we believe Cisco’s strong execution, as exemplified by its improved OM guide and improving revs profile and the anticipation of ramping recurring and software revs are enough to keep the stock working.”

“We are incrementally more comfortable with Cisco’s revenue growth profile and believe there could be upside to our estimates should new products and services materialize. We expect that a stronger OM will accelerate EPS growth in CY16 and are therefore raising our PT to $34 from $31.50 (11.7x ex-cash our CY16 EPS of $2.36).”, the analyst added.

Out of the 32 analysts polled by TipRanks, 20 rate Cisco stock a Buy, 9 the stock a Hold, and 3 recommend a Sell. With a return potential of 0.1%, the stock’s consensus target price stands at $28.93.