Cisco shares to soar on its subscription sales opportunity: JP Morgan

Investing & Retiring

Cisco shares will thrive due to its pivot to a more recurring revenue business model, according to one top Wall Street firm.

J.P. Morgan reiterated its overweight rating for Cisco’s stock, predicting the company’s recently announced mandatory subscription offering for networking switches will boost its profits.

The firm has a “favorable outlook for Cisco’s positioning in software capabilities which we believe are well aligned to the transformation in the industry from primarily proprietary hardware to proprietary software adding flexibility and agility to the network,” analyst Samik Chatterjee said in a note to clients Monday. “We believe Cisco’s extensive software capabilities and recurring subscription based rev additionally call for a re-rating in the shares, which have historically traded at discount to software companies and to the market multiple despite a strong earnings outlook.”

Source link

Products You May Like

Articles You May Like

Constellation dropped billions on pot. Here’s why it may be a bum deal.
Homebuilder and construction stocks enter bear market
Goldman Sachs warns about US companies’ emerging market exposure 
Claiming Social Security early might not lead to regrets 
Wells Fargo raises its Nvidia price target to $315 from $140 in a rare double upgrade

Leave a Reply

Your email address will not be published. Required fields are marked *