Wednesday, May 18

Cisco deepens losses in 2022 with analysts divided


Right now off its highs for the past year, Cisco Systems loses in the market more than 14.5%, almost at the end of last year. And it is practically the entire downward path experienced so far this year, clearly negative to date for the market value.

Cisco will publish its results on February 16 for which the market expects earnings per share of 0.81 dollars, which would mean, if these estimates materialize, a growth of 2.53%. As for its quarterly income, they would grow by around 5.77% to 12,650 million euros, compared to the same period of the previous year.

for the whole exercise earnings per share of $3.62 per share expected with an increase of 6.21% e global revenue for the full year of $52.67 billion, which, de facto, would mean an increase of 5.72% compared to the previous year.

In its price graph we see that the value falls 6% in the last five sessions, with double-digit losses of 11.7% for the value in the previous month. Barely no movement in the quarter, so far this year the value cuts 11.46%.

Cisco annual value quote

While analysts postulate on the value. From JPMorgan su analista Samik Chatterjee has adjusted its share price slightly downward from the previous $70 to the current $69. And your recommendation overweight value in the market that remains.

Heading into the fourth-quarter earnings season for networks and hardware, the expert notes, he sees the recent pullback in growth companies as offering an attractive entry point. But the JP Morgan analyst expects it to be repeated in his figures to be published the strong growth of 2021 in 2022 with an upside potential of supply instead of value companies, which he believes are poised for a material slowdown this year.

On the other hand, from Tipranks of the 18 analysts that gathers the consensus, 9 choose to buy and 9 to hold, while they place its average target price is $65.69, with a potential advance of 17%.

Cisco Value Recommendations

Y from Goldman Sachs his analyst Rod Hall remains neutral on value, with target price unchanged at $65 a share, understanding that the information technology network giant is getting closer to its target price.

Yes OK the company’s order book is at a “record high”, the analyst has signaled that he believes order growth is more important for stocks. In fact, Goldman Sachs is less optimistic about its actions as it understands that spending on information technology will be reduced.

However, not everything is negative in the recommendations on Cisco Systems, far from it. At Tigress Financial they consider their actions to be safe buying advice, with a target price of $73 per share.

His analyst Ivan Feinseth highlights Cisco is well positioned to benefit from increased business spending on Information Technology, that this firm does consider against Goldman Sachs, which will be produced on all computer platforms.

What’s more, expects the company’s strong balance sheet and cash flow to continue to fund further growth initiatives and strategic acquisitions, as happened last fall after its agreement to buy the Epsagon cloud analytics platform.

And they estimate that if the company is successful, its shareholders will be too. The firm has increased its dividend for the 10th consecutive year and is expected to do so again in February.

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