Deutsche Bank analyst Vijay Bhagavath was out pounding the table on Cisco Systems, Inc. (NASDAQ:CSCO) Monday, reiterating a Buy rating and price target of $37, which implies an upside of 22% from current levels.
Bhagavath wrote, “In this ideas piece, we present a bullish argument, backed by scenario analysis, on how CSCO could drive +4% Top Line growth and +$3 in Earnings Power, over the next three+ years. We call for CSCO “doubling down” on new products and inorganic strategies for driving Top Line growth from Mega Themes: 1) Analytics and Machine Learning, 2) Next Gen Security, 3) Internet of Things, 4) 5G Wireless, 5) Cloud Automation, etc. CSCO could “rerate” from a “low teens” to a “mid teens” multiple, as investors buy-in to a “Fly Wheel” effect of Top Line Growth from Mega Themes, reinforcing margin improvement derived from transition to a Recurring Revenue model.”
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vijay Bhagavath has a yearly average return of 0.0% and a 54% success rate. Bhagavath has a 16.3% average return when recommending CSCO, and is ranked #2782 out of 4180 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 9%, the stock’s consensus target price stands at $33.39.