Analyst: This Blue Chip Could Soar 20%

Wolfe Research started coverage on CSCO with an "outperform" endorsement

Digital Content Manager
Dec 11, 2018 at 2:02 PM
facebook X logo linkedin


Shares of Cisco Systems, Inc. (NASDAQ:CSCO) are up 0.7% to trade at $47.20, after analysts at Wolfe Research initiated coverage with an "outperform" rating and a $56 price target -- representing expected upside of about 20% to Monday's close, and in territory not charted since 2000. This follows yesterday's win when CSCO -- along with this mobile app maker -- was named a "best idea for 2019" by Cowen.

The stock has climbed 23% year-to-date, with pullbacks supported by the 200-day moving average. The equity has been somewhat choppy since its Oct. 3 17-year high of $49.47, but just last week came within a point of this milestone before pulling back.

Cowen and Wolfe aren't the only analysts showing love for the tech giant. The majority of analysts following CSCO issue a "strong buy" or "buy" rating, with not a single "sell" recommendation. On the other hand, the blue chip would need to rally just 11% to hit its consensus 12-month price target of $52.32. 

Options traders, meanwhile, have grown wary of Cisco Systems lately. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows a 10-day put/call volume ratio of 0.63 -- in the 76th percentile of its annual range. While this ratio indicates that long calls still outnumbered puts on an absolute basis, the annual percentile points to a healthier-than-usual appetite for bearish bets over bullish of late.

Echoing this, the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.04 is higher than 86% of all others from the past year. This suggests short-term options traders have rarely been more put-biased in the past 12 months.

 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI