Cisco: tops the Dow on positive comments from Deutsche Bank
April 09, 2024 at 10:28 am EDT
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Cisco stood out on the New York Stock Exchange on Tuesday, reacting to positive comments from Deutsche Bank, which decided to make the network equipment manufacturer's stock a "buy idea".
Just over half an hour after opening, the California-based group's shares gained 1.4%, topping a Dow Jones index down 0.1% at the same time.
The intermediary highlights the depressed market sentiment surrounding the stock, following two target revisions, as well as its cheap valuation, which shows a 35% discount to the S&P 500 index.
Deutsche Bank points out that the stock is currently trading on a PER of 12x for 2025, compared with 19x for the S&P, a level 35% below its historical average.
While noting that the Splunk acquisition is not a game-changer, the analyst believes that the deal could hold a few pleasant surprises, and is positive ahead of the June investor meeting, prompting him to slightly raise his price target on the stock from €51 to €52.
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Cisco Systems, Inc. is the world leader in designing, developing, and marketing Internet network equipment. Net sales break down by family of products and services as follows:
- network equipment (68.9%); switches and routers, technological software and systems (storage, Internet access, and security systems, wiring, gateways, connection interfaces and modules, etc.), etc.;
- services (24.3%): technical assistance, network design, execution, and integration services, etc.;
- security products (6.8%).
Net sales are distributed geographically as follows: Americas (58.7%), Europe/Middle East/Africa (26.6%) and Asia/Pacific (14.7%).
CISCO SYSTEMS, INC. 
