NewTradingView.com – Investing and Stock News
Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Investing

Should I buy Cisco shares after a positive view from UBS?

by September 11, 2022
written by September 11, 2022

Cisco Systems, Inc. (NASDAQ: CSCO) shares have been advancing last several days, and the technical picture implies that the price could advance above the $50 resistance this month.

Cisco is attractively valued

Cisco is a healthy and stable technology company that could generate more profitability due to having a more software-oriented management team.

A multinational investment bank and financial services company UBS announced last week that it believes in constant product innovation in the field of cyber security, in which Cisco has significant upside potential.

According to UBS, AI, big data, and cyber security fields are at an inflection point that should see faster adoptions in the next few years. UBS strategist Sundeep Gantori said:

We forecast the combined revenues of the three segments will grow from $386 billion in 2020 to $625 billion in 2025, implying an average clip of 10% annually, higher than the mid- to high-single digits we forecast for the broader tech sector.

Cisco continues to move in the right direction, and the stock price is attractively valued given its steady revenue growth and strong free cash flow generation.

Cisco reported fourth-quarter results last month; total revenue reached $13.1 billion, which was $320 million above expectations, while GAAP EPS for the same period was $0.83 (beats by $0.01).

The board of directors declared a $0.38/quarterly share dividend which will be payable on October 26 to stockholders of record as of October 5, 2022.

The supply chain constraints that affected Cisco’s business last several months began to ease slightly in the back half of the fourth quarter, and Chief Executive Chuck Robbins said that he expects the company to see strong performance in the upcoming quarters.

The company’s management expects a 4% – 6% revenue growth rate for the 2023 fiscal year, while the EPS should be between $2.77-$2.88.

Cisco trades at less than thirteen times TTM EBITDA, and with a market capitalization of $188 billion, shares of this company represent an opportunity for long-term investors.

$50 represents the first resistance level

Cisco’s business continues to grow; the company reported better than expected fourth-quarter results last month, and the technical picture implies that the price could advance above $50 resistance this month.

Data source: tradingview.com

Rising above $50 supports the continuation of the positive trend, and the next price target could be located at $55.

On the other side, if the price falls below $43, it would be a “sell” signal, and we have the open way to the strong support that stands at $40.

Summary

Cisco Systems shares have been advancing last several days, and the technical picture implies that the price could advance above the $50 resistance in September 2022. Cisco is in a good position to grow its business, and with a $188 billion market capitalization, this stock is not expensive, and the risk/reward ratio is attractive for long-term investors.

The post Should I buy Cisco shares after a positive view from UBS? appeared first on Invezz.

0 comment
0
FacebookTwitterPinterestEmail

previous post
What does the ‘midterm election’ mean for the U.S. stock market?
next post
Reason and the Freedom of Speech

You may also like

Disney Q1 earnings report: ‘this stock is unmatched...

February 9, 2023

Bank of America sees a 50% upside in...

February 8, 2023

Google stock loses 9.0% after it’s A.I event:...

February 8, 2023

Ex-Coinbase manager pleads guilty to insider trading charges

February 8, 2023

U.K. CMA issues provisional decision on Microsoft-Activision deal

February 8, 2023

Nasdaq 100 forecast – can index continue to...

February 8, 2023

Jim Cramer is bullish on Uber stock after...

February 8, 2023

Summary of Powell’s remarks and what it means...

February 8, 2023

Best undervalued Bill Ackman stocks for 2023

February 8, 2023

What’s happening to Chipotle stock in extended hours?

February 7, 2023
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Popular Posts

  • 1

    My Trigger to Enter $VAPR

  • 2

    Multi-Millionaire Trader Explains Why You Should Start Trading With A Small Account {VIDEO}

  • 3

    Scaling Up Tips From A 24-Year Old Millionaire Trader {VIDEO}

  • 4

    Pay Attention to These Stocks

  • 5

    New ‘Hunger Winter’ Looms as Europe Prepares to Shiver

Recent Posts

  • Disney Q1 earnings report: ‘this stock is unmatched anywhere else’

    February 9, 2023
  • Bank of America sees a 50% upside in this travel stock

    February 8, 2023
  • Google stock loses 9.0% after it’s A.I event: buy the dip?

    February 8, 2023
  • Ex-Coinbase manager pleads guilty to insider trading charges

    February 8, 2023
  • U.K. CMA issues provisional decision on Microsoft-Activision deal

    February 8, 2023

Categories

  • Economy (615)
  • Editor's Pick (235)
  • Investing (1,639)
  • Stock (9)
  • About Us
  • Email Whitelisting
  • Terms and Conditions
  • Privacy Policy
  • Contacts

Disclaimer: NewTradingView.com, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


Copyright © 2023 NewTradingView.com All Rights Reserved.


Back To Top
NewTradingView.com – Investing and Stock News
  • Investing
  • Stock
  • Economy
  • Editor’s Pick