Company Update (NASDAQ:CSCO): Cisco Systems, Inc. Board Eyes CEO Chuck Robbins as Chairman After John Chambers Passes on Re-Election


Cisco Systems, Inc. (NASDAQ:CSCO) announced that Executive Chairman John Chambers has notified the Cisco Board of Directors that he will not stand for re-election to the board of directors in December. The Board plans to appoint Cisco CEO Chuck Robbins to serve as chairman when Chambers’ term expires at the annual meeting of shareholders on December 11, 2017. At that time, John will also be given the honorary title of Chairman Emeritus.

John Chambers was named executive chairman on July 26, 2015. As executive chairman Chambers has focused on supporting Robbins and engaging closely with customers and governments around the world through Cisco’s Country Digitization initiatives. Chambers served as CEO of Cisco from January 1995 to July 26, 2015, having joined the company in 1991 as the head of sales. During his time as CEO, he built the company from $1.2 billion in annual revenue to nearly $50 billion.

“John’s brilliant mind, compassion and charismatic leadership have helped shape Cisco for over 20 years, and for that we are all grateful,” said Chuck Robbins, chief executive officer, Cisco. “John’s influence on the industry is immense and he built Cisco around a culture of integrity and innovation that will continue to serve our employees, partners and customers for decades to come. I have no doubt he will continue to have a lasting impact with his future endeavors.”

“John’s tremendous vision, energy and passion helped Cisco become the great company it is today,” said Carol Bartz, lead independent director, Cisco Board of Directors. “John’s leadership helped bring the internet to billions of people around the world, enabling them to access information, build connections and improve their lives. At the right time, he initiated and brought to fruition a CEO succession process that resulted in the right person, Chuck Robbins, leading the company into the future. We owe John a debt of great gratitude for his extraordinary service to Cisco.”

Chuck Robbins assumed the role as Cisco CEO on July 26, 2015. At the Annual Meeting, the Cisco Board is expected to reduce the size of the Board to eleven members, ten of whom will be independent directors. The Board’s charter ensures that the lead independent director plays a critical role in leading corporate governance. (Original Source)

Shares of Cisco are rising 0.34% in pre-market trading Monday, or up $0.11 to $32.55. CSCO has a 1-year high of $34.60 and a 1-year low of $29.12. The stock’s 50-day moving average is $31.66 and its 200-day moving average is $32.44.

On the ratings front, Cisco has been the subject of a number of recent research reports. In a report issued on September 11, Robert W. Baird analyst Jayson Noland assigned a Buy rating on CSCO, with a price target of $38, which implies an upside of 17% from current levels. Separately, on September 6, RBC’s Mitch Steves reiterated a Buy rating on the stock and has a price target of $36.

According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Jayson Noland and top analyst Mitch Steves have a yearly average return of 3.4% and 27.5% respectively. Noland has a success rate of 52% and is ranked #1607 out of 4651 analysts, while Steves has a success rate of 85% and is ranked #94.

Overall, 6 research analysts have assigned a Hold rating and 16 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $35.84 which is 10.5% above where the stock closed on Friday.