S&P Upgrades Cisco Stock

S&P equity analyst upgrades Cisco stock to Buy, believing that the firm is well positioned for a technology turnaround

November 21, 2002

1 Min Read

NEW YORK -- Standard & Poor's Computer Hardware, Networking Hardware & Semiconductor Equity Analyst Megan Graham-Hackett today upgraded the stock of Cisco Systems (Nasdaq: CSCO - News) to a "Buy" ranking from a "Hold" noting the networking solutions giant's marketshare gain in the switch and router market. Based on today's upgrade, Cisco Systems is now ranked a five-STAR stock under the proprietary Standard & Poor's Stock Appreciation Ranking (STARS) System. A leader in global financial research and independent investment analysis, Standard & Poor's announced the upgrade through Standard & Poor's MarketScope, its real-time market intelligence service. "Recent marketshare figures reveal that Cisco has made strong gains in the switch and router market," notes Standard & Poor's Graham-Hackett. "Given Cisco's recent marketshare gains, quarterly free cash flow generation of $1 Billion plus, zero debt, and $21 Billion in cash/investments, Standard & Poor's feels that Cisco is positioned properly to see further martketshare gains once the technology sector begins its turnaround." "While a demand rebound is not in our forecast, Standard & Poor's notes that recent data suggests capital expenditure cuts have bottomed," continues Graham-Hackett. "In addition, new surveys show networking gear will be a priority in 2003 for enterprise IT spending. As a result, Standard & Poor's feels that Cisco's discounted cash flow, as well as its price/sales ratio suggest a 12-month price target of $17.50." Standard & Poor’sCisco Systems Inc.

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