UBS analyst Steven Milunovich was out pounding the table on Cisco Systems, Inc. (NASDAQ:CSCO) Monday, reiterating a Buy rating and price target of $29, which represents a slight upside potential from current levels.
Milunovich wrote, “Companies are choosing to partner deeply with a narrow set of large technology vendors that can provide interoperability across products. That was Kevin Bandy’s observation nine months after joining as Cisco’s Chief Digital Officer. Although it is to Cisco’s advantage to believe that, we think it is true that offering a complete stack is an advantage. Recent data center announcements allow Cisco to link together and automate applications, networks, and security infrastructure. Moreover, Cisco is trusted. Our recent UBS CIO survey found two-thirds of users open to using Cisco as their primary data center supplier. Another example is security, where the level of fragmentation probably is unsustainable. Cisco is perhaps the best positioned vendor to consolidate the security market given its large balance sheet, dominant position in the network for visibility into threat information, and leading market share.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Steven Milunovich has a yearly average return of 0.5% and a 41% success rate. Milunovich has a 12% average return when recommending CSCO, and is ranked #1862 out of 3880 analysts.