Nomura Securities reaffirmed their rating on Monday for technology company, Cisco Systems, Inc.(CSCO) prior to its earnings report release tomorrow.
One day prior to the company’s release of its quarterly earnings, the firm is maintaining its “Buy” rating for CSCO, and has given the company a price target of $22. This price suggest a 23.7% increase over the stock’s current price of $16.77.
The firm believes that macro issues may have a negative effect on the company’s first quarter earnings, but cost controls may help offset a decline in EPS.
An analyst from the firm commented, “results from industry peers point to a challenging IT spending environment. On average, CQ3 revenue results from large-cap tech companies fell short of expectations by 1.9%, while small caps were down by 0.9%. Common themes from earnings included: continued weakness in EMEA, soft US enterprise and federal spending, and weakness in hardware investment.”
Cisco Systems shares were mostly flat during Monday morning trading. The stock is down -7.19% YTD.
The Bottom Line
Shares of Cisco Systems (CSCO) have a 3.33% dividend yield, based on Friday’s closing stock price of $16.82. The stock has technical support in the $15-$16 price area. If the shares can firm up, we see overhead resistance around the $18-$19 price levels.
Cisco Systems, Inc.(CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.