Baird analyst Jayson Noland was out with a research note on shares of Cisco Systems, Inc. (NASDAQ:CSCO), after reviewing Cisco’s most recent quarterly results. The analyst rates Cisco shares an Outperform with a price target of $35, which implies an upside of 12% from current levels.

Noland noted, “Gross margin continues to trend higher as productivity improvements more than offset product pricing declines in F16, similar to trends witnessed in F13-F15. We view this this as a clear positive relative to SDN concerns. Security continues to be prioritized as a key growth area.”

“In a recent earnings call (FQ3’16), management indicated that while they would continue to be opportunistic around key priority and growth areas, they would not expect M&A to be quite as fast paced. We believe the announcement this week regarding the pricing of $6.25 billion in debt was planned given the $4.1 billion in debt due to mature in March,” the analyst added.

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jayson Noland has a yearly average return of 9.9% and a 60% success rate. Noland has a 17.2% average return when recommending CSCO, and is ranked #484 out of 4151 analysts.

Out of the 32 analysts polled by TipRanks, 20 rate Cisco stock a Buy, 11 rate the stock a Hold and 1 recommends a Sell. With a return potential of 4%, the stock’s consensus target price stands at $32.67.