Cisco (NASDAQ: CSCO) shares continue to trade above $50 support, and with a $218B market capitalization, this stock is still reasonably valued. Cisco is a company with good fundamentals, and Wolfe Research increased its price target on Cisco to $63 last week.
Fundamental analysis: Wolfe Research increased its price target on Cisco to $63 last week
Cisco is a healthy and stable technology company that could generate more profitability due to having a more software-oriented management team. Goldman Sachs recently announced that Cisco shares are still undervalued relative to the market and raised the price target from $50 to $59.
It is important to mention that Wolfe Research and JPMorgan also positively view this company. Wolfe Research increased its price target on Cisco to $63 last week as the rise of software and “strong IT spending should contribute to multiple expansion.
Cisco reported Q2 2021 results in February; total revenue has decreased by -0.1% Y/Y to $12B while Q2 GAAP EPS was $0.60 (beats by $0.02). Total revenue has decreased below estimates (beats by $100M), and it is important to say that Cisco increased a quarterly dividend by 3% to $0.37 per common share.
“We are seeing encouraging signs of strength across our business, showing how our technology will be a powerful engine for recovery and growth. For fiscal Q3, we expect revenue growth of 3.5%-5.5% and EPS of $0.80-$0.82 (in line with consensus for $0.81),” said CEO/Chairman Chuck Robbins.
Cisco has raised its dividend for the last ten years, and the stock’s 2.8% dividend payout still remains attractive. Cisco continues to move in the right direction, and in this ongoing bull market, shares of this company have upside potential.
