July 13, 2012 at 09:37 AM EDT
Sterne Agee Says Cisco is “Underappreciated,” but Still Slashes Target & Estimates (CSCO)

Networking equipment maker Cisco Systems, Inc. (CSCO) on Friday received some mixed commentary from analysts at Sterne Agee.

The firm maintained its “Buy” rating on CSCO but lowered its price target from $27 to $23. That new target suggests a still-massive 44% upside to the stock’s Thursday closing price of $15.98.

Despite lowering its earnings estimates for the company, citing macroeconomic headwinds, Sterne Agee still likes CSCO’s growth potential. The analyst called Cisco “an underappreciated turnaround story similar to what we have seen with Apple, IBM, and EMC in the past.”

Cisco shares posted modest gains in premarket trading Friday.

The Bottom Line
Shares of Cisco Systems (CSCO) have a 2.00% dividend yield, based on last night’s closing stock price of $15.98. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $17-$18 price levels.

Cisco Systems, Inc. (CSCO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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