Considered one in all the more up-and-down veteran tech stocks of this 12 months, Cisco Systems (NASDAQ: CSCO), had a very nice up trading session Tuesday. The networking equipment company’s share price climbed nearly 4% higher on an analyst’s price goal bump. That was a solid gain as compared with the S&P 500 index, which only managed to inch up by 0.1% on the day.
A small bump as a result of Splunk
Deutsche Bank‘s Matthew Niknam was the person behind the lift. Before market open, he added $1 per share to his Cisco price goal for a recent tally of $52. That caution reflects his general view of the stock, as he maintained his hold suggestion on it.
In a research note, Niknam wrote that the adjustment was resulting from changes in his estimates for the company, though it wasn’t immediately clear which estimates, and to what degree he modified them.
This, in turn, followed the recent closing of Cisco’s acquisition of cybersecurity company Splunk. While that deal wasn’t a reasonable one — it was an all-cash transaction valued at roughly $28 billion — it did considerably bolster Cisco’s presence inside the high-demand cybersecurity segment.
Probably essentially the most recent guidance wasn’t impressive
Cisco has been a roller coaster of a stock particularly since publishing its second-quarter earnings report, through which the company fell notably short on each current-quarter and full fiscal-year guidance (although, to be fair, it beat on trailing quarterly revenue and profitability). Assuming it integrates Splunk effectively, the large recent asset should help the one-time networking titan post more encouraging numbers.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Idiot has positions in and recommends Cisco Systems. The Motley Idiot has a disclosure policy.
Why Cisco Systems Topped the Market on Tuesday was originally published by The Motley Idiot