UPDATE 1-RESEARCH ALERT-Oppenheimer raises Cisco to outperform

* Sets $23 price target on stock

* Brokerage raises routing estimates for Cisco

* Shares up 2 pct

Dec 6 (BestGrowthStock) – Oppenheimer upgraded Cisco Systems Inc
(CSCO.O: ) to “outperform,” saying the shares were compelling at
current levels with the stock approaching a trough since the
networking giant gave a disappointing outlook.

Shares of Cisco were up 2 percent at $19.52 in morning
trade on Nasdaq.

On Nov. 10, the technology bellwether’s projection for 3-5
percent revenue growth in the fiscal second quarter fell short
of Wall Street’s expectations for 13 percent. [ID:nN10245398]

Since then, the stock has lost 22 percent of its value.
Rival Juniper Networks Inc’s (JNPR.O: ) shares were flat in the
same period. The Nasdaq Composite (.IXIC: ) index has gained 0.5
percent.

“With… sentiment at a low and valuation near trough
levels, we are willing to take a leap of faith and buy Cisco,”
analyst Ittai Kidron wrote in a note to clients.

Oppenheimer expects Cisco to benefit from the strong
position in the wireless market and surging wireless traffic
growth. It also said share repurchases could help support the
stock over the near term.

The brokerage said it was raising routing estimates for the
world’s top maker of routers and switches, saying it had
underestimated the overall market’s growth potential and the
recovery of deferred revenue from Cisco’s acquisition of
Starent.
(Reporting by Swati Chitnis in Bangalore; Editing by S. John
Tilak) (([email protected]; within U.S. +1 646
223 8780; outside U.S. +91 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 1-RESEARCH ALERT-Oppenheimer raises Cisco to outperform