Cisco Systems, Inc. (NASDAQ:CSCO) is scheduled to deliver its financial fourth-quarter results tomorrow. Ahead of earnings, Drexel Hamilton analyst Brian White reiterates a Buy rating on Cisco shares with a price target of $36, which represents an almost 16% increase from where the stock is currently trading.

White projects CSCO will meet his revenue forecast of $12.57 billion, identical to the Street’s estimate. White also anticipates Cisco will top his EPS projection of $0.59, and the Street’s of $0.60. Cisco’s fourth quarter outlook expects EPS of $0.59 to $0.61 and anticipates a year-over-year increase in sales of $12.36 to $12.73 billion. Looking ahead to the first quarter of fiscal year 2017, White models revenue of $12.38 billion, under the Street’s projection of $12.52 billion, as well as EPS of $0.59, with the Street remaining at $0.60.

Seeing impending success for the tech giant, White asserts, “We continue to believe Cisco’s stock has an upward bias, especially given its 3.3% dividend yield, attractive valuation (10x ex-cash; 2017), margin execution story and expanding market reach with higher levels of software.”

White adds, “Despite an overall muted IT spending environment, we believe new product launches, the ramp of ACI, new security initiatives and new partnerships provide Cisco with a buffer. Also, the acquisition of Jasper, the ramp of the Cisco HyperFlex System, the roll-out of Tetration Analytics and the introduction of next-generation Nexus switches are part of this cycle.”

As usual, we like to include the analyst’s track record when reporting on new analyst notes to give a perspective on the effect it has on stock performance. According to TipRanks, top five-star rated analyst Brian White has achieved a high ranking of #82 out of 4,121 analysts. White upholds a 62% success rate and earns 9.3% in his average returns. When recommending CSCO, White realizes 11.2% in average profits on the stock.

TipRanks analytics demonstrate CSCO as a Buy. Based on 23 analysts polled in the last 3 months, 16 rate a Buy on Cisco, 6 maintain a Hold, while 1 issues a Sell. The average price target is $3.95, marking a close to 3% upside from where the shares last closed.

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