Blue Chip Eyes Best Day in Months on Earnings Win

Cisco stock has impressed analysts with its quarterly report

Managing Editor
May 16, 2019 at 10:09 AM
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Blue chip Cisco Systems, Inc. (NASDAQ:CSCO) is up 5.1% at $55.12 this morning, after last night reporting fiscal third-quarter profit and sales that surpassed analyst estimates. The company cited router and switch sales, alongside cyber security strength, as the main catalyst behind the beat. 

Analysts have been quick to react to the news, with no fewer than six handing out price-target hikes, including one to $65 from $62 out of Cowen and Co. Coming into today analyst sentiment was optimistic as well, with 15 of 19 covering firms sporting "buy" or "strong buy" recommendations. Further, CSCO's average 12-month price target of $58.17 stands at an 5% premium to current levels. 

Today's outperformance has the gapping back above the $54 level for the first time in two weeks, and set for its best day since Dec. 26. Longer term, Cisco Systems stock has gained 21% year-to-date, and is eyeing its first close back above the 40-day moving average since May 3.

 

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