Cisco Gets Upgrade On Deals, Economic Recovery
Cisco Systems is winning new deals and benefiting from a broad economic recovery, a William Blair analyst said Wednesday as he upgraded the company's stock.
"Our analysis suggests that there has been significant pent-up demand building over the last year for Cisco's products ... which has started to loosen up over the past few months," William Blair analyst Jason Ader told investors in a note.
He raised his rating on Cisco , the world's largest provider of computer networking equipment, to "Outperform" from "Market Perform."
Ader said Cisco is benefiting from new projects as well as "overdue network maintenance needs" that customers have been putting off during the recession.
"From a competitive standpoint," Ader said, "Cisco has stepped up the pressure and has seen success from bundling and discounting."
He also praised Cisco's recently announced plan to acquire Norway's Tandberg ASA for $3 billion, a move he said will help the company make video communication "ubiquitous" in the business market. Ader said the potential growth of video helps offset some concern about slower growth in Cisco's core networking business.