Cisco (CSCO) will work with AT&T (T) to reach more enterprise customers with Webex, its cloud-based collaboration solution. Webex supports video meetings, calling, and messaging through a single app.
The COVID-19 pandemic is accelerating the adoption of a hybrid workforce model wherein companies allow their employees to work from the office or home, or while on the move. As part of this shift, companies are turning to integrated cloud collaboration solutions, and Cisco is positioning itself to meet that demand with Webex.
Through the arrangement, AT&T and Cisco will combine their products to improve the performance and reliability of Webex calling for enterprise users. Cisco’s Unified Communications Manager Cloud (UCMC) will bring cutting-edge technology to Webex.
AT&T is one of the leading telecom providers in the U.S., serving both consumers and businesses. Nearly 2,000 of the biggest multinational companies are its customers. (See AT&T stock analysis on TipRanks)
“Our Webex solutions transformed the cloud calling experience and combine enterprise-calling features with market-leading virtual meetings and collaboration technology,” commented Javed Khan, Cisco Collaboration general manager.
Cisco primarily sells networking gear and offers accompanying software and services. It has partnered with AT&T to offer voice services since 1997. The latest arrangement to sell Webex to enterprise customers extends that relationship. (See Cisco stock analysis on TipRanks)
Morgan Stanley analyst Meta Marshall reiterated a Buy rating with a price target of $57 on Cisco stock. Marshall’s price target implies 5.42% upside potential. The analyst cited improving demand for Cisco products as justification for maintaining his bullish view on the stock.
“We believe earnings power is underappreciated ahead of expected resumptions in enterprise office project activity and inorganic growth contributions from Acacia. Our checks post April leave us further encouraged following our initial checks post March,” noted Marshall.
Consensus among analysts is a Moderate Buy based on 12 Buys and 7 Holds. The average analyst Cisco price target of $56.31 implies 4.14% upside potential to current levels.
CSCO scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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