Cisco’s revenue continues to rise after the tech giant exceeded the Street’s fiscal first quarter 2018 expectations after market close. Analysts are clambering to increase their financial goals on Cisco stock with investors sending shares up to highs which haven’t been matched for 17 years. Trading rates are up 1.5% at $36.44, CSCO, which reflects a 20.6% gain year-to-date (YTD), while the S&P 500 has increased 15.4% over the same period.
The corporation is expecting returns of revenue growth of 1% to 3% for the current quarter between $11.70 billion to $11.93 billion.
And this isn’t just a spike, this growth has been classed as sustainable. “Cisco is executing according to plan and we are impressed by the security growth, recurring revenue growth, and the steady capital allocation program.” This came from analysts at RBC Capital Markets who lifted their price target on CSCO from $36 to $40 (following an earnings report)
Praising Cisco’s transition to software-based products as the main contributor to their revenue, Raymond James’ Simon Leopold, financial managing director, increased his price target from $35 to $37. The analyst brought attention to ‘deferred revenue’ which can come around due to payments received on long-term contracts.
Deutsche Bank analysts have also upped their price goals from $40 to $45- outlining the positives from trends in more developed enterprise and IT spending.
Morgan Stanley, in the same light increased its price target to $39, which implies a larger integration of security and networking choices will go on to further strengthen Cisco’s development.