Cisco Systems reported modest upside versus October quarter estimates while guiding revenue and earnings above expectations for the January quarter, Piper Jaffray analyst Troy Jensen tells investors in post-earnings research note partially titled "Company Networks Together Strong Results."
The analyst sees Cisco's transition to more of a software based model impeding any substantial near-term revenue growth, but he still believes the shares look attractive at current levels. Cisco has a "healthy" balance sheet, "attractive" dividend yield and a cash repatriation bill could serve as a potential catalyst for the stock, Jensen argues. He raised his price target Cisco to $37 from $36 and reiterates an Overweight rating on the name. The stock in after-hours rose 6%, or $2.02, to $36.13.
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