Cisco Systems (CSCO) is now trading up 9% at $27.40 pre-market after beating earnings yesterday. It has already traded about 6 million share pre-market and CSCO shares will likely be the most active of the large-cap tech names today. CSCO posted $0.31 EPS vs $0.29 estimates and revenues of $8.18 Billion vs $7.9 Billion estimates. It also raised its guidance on an organic basis and on a post-Scientific Atlanta basis. CSCO put Q4 at 24% to 25% revenue growth instead of a 21% growth indicated, and 14% to 15% on a pre-Scientific Atlanta basis instead of the original 10% to 15% range previously given.Yesterday we noted that Cisco was above the call of duty and that analysts would have to play catch-up in the stock today. These are just a sample of the analyst calls on CSCO shares today, although there are essentially 15 calls out and more will be out later in the morning:A.G.Edwards target raised to $31.00.Banc of America raised its target to $30.00.Goldman Sachs raised its target to $35.00.JMP Securities target raised to $29.00.Pacific Crest target raised to $30.00.Piper Jaffray target raised to $28.00.UBS raised its rating to Buy and raised target to $32.00.The average stock price target going into earnings in August was $23.00+. The target going into earnings yesterday was $26.00 or thereabouts. It appears as though the new price target average on teh street is going to settle in at about $28.00+. That is actually only about 3% higher than pre-market levels, so we’ll have to see if the stock gets more follow-on calls in the coming weeks from the same firms or if the stock settles in to some levels. Stay tuned.Jon C. OggNovember 9, 2006
Analysts Playing Catch-Up in Cisco Systems (CSCO)
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
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