Cisco Stock Remains 'Very Attractive': Analyst
Cisco stock seems to be “quite inexpensive” and relative to its peers, it remains “very attractive,” said Simon Leopold, analyst at Morgan Keegan.
“The expectation that the company has lost overall market share is a tremendous exaggeration and this is presenting to investors an opportunity for investment—[although] it’s not necessarily a short-term trade,” Leopold told CNBC.
Cisco shares have slipped more than 30 percent over the last year. But Leopold still has an “outperform” rating on the stock with a price target of $27.75.
“This is not to deny the missteps or that the company needs to improve its focus—something they’re now admitting,” said Leopold.
On Tuesday, Cisco CEO John Chambers sent a memo to employees defending the networking company's strategy while acknowledging it has flaws in "operational execution" and a loss of accountability.
Scorecard—What He Said:
- Leopold's Previous Appearance on CNBC (Nov. 11, 2010)
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CNBC Data Pages:
Cisco Competes With:
Leopold does not own shares of CSCO.