In a report published Friday, Morgan Stanley analyst James E. Faucette reiterated an Overweight rating on Cisco Systems (NASDAQ: CSCO), but removed the $30.00 price target.
In the report, Morgan Stanley noted, “While we expect Cisco will continue to work through service provider spending pauses and emerging market sales struggles in the 1HFY15, we expect the refreshed product portfolio and focused sales force to help the company resume growth in FY15. We believe that if the new products are able to find good traction, that the bear case of tech disruption will be directly rebutted, leading to not only potential revenue and earnings upside, but also multiple expansion from its current ~10.5x FY16 EPS. Our $30 PT is based on ~12.5x our FY16 EPS estimate of $2.37.”
Cisco Systems closed on Thursday at $24.85.
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