Following Cisco Systems, Inc. (NASDAQ:CSCO)’s CiscoLive! conference in Las Vegas, Morgan Stanley analyst James Faucette provided his insights on the company. The event in Las Vegas attracted more than 26,000 attendees and focused on security and IoT education.  

The analyst believes that Cisco’s management took full advantage of their attentive audience. The company’s management explained that Cisco is driving its network reach a shift into the IT security sector. The company seeks to build its security platform around “the core functional elements of visibility, analytics, and response/automation.” 

The analyst believes that a successful shift toward the IT security landscape would offer only “incremental opportunity and value.” Although the company’s security business has seen moderate growth, the analyst does not predict any significant growth in traditional network spending based on conference responses. However, the analyst notes a substantial opportunity to improve returns on security spending should management execute properly. Near term, the analyst has a lukewarm sentiment on the stock. He explains, “We are big believers that returns on security spend need to improve…. as that shift follows the path being built by Cisco, we could become more constructive on the stock.”

The analyst analyst maintains an Equal Weight rating on the stock with a price target of $28.00.

According to TipRanks, James Faucette is ranked #410 of 4,060 analysts, maintains a success rate of 73% on his calls and realizes an annual return of 9%. When rating CSCO, the analyst upholds a 100% success rate with an average return of 15%.

Currently, 68% of analysts issue a Buy rating for CSCO, 27% maintain a Hold rating, and 5% uphold a Sell rating for the stock. The consensus target price for CSCO is $31.26, marking a 5% upside from current prices.