Buy Cisco into its big analyst day next week, Credit Suisse says

Key Points
  • Credit Suisse reiterates its $40 price target for Cisco shares, representing 26 percent upside from Wednesday's close.
  • The firm reaffirms its outperform rating for Cisco, citing its move toward subscription and services sales.
A bicyclist rides by a sign in front of the Cisco Systems headquarters in San Jose, California.
Justin Sullivan | Getty Images

Investors should buy Cisco shares because the company will become a more stable subscription-oriented business, according to Credit Suisse, which reiterated its outperform rating on the technology firm.

Cisco will hold its financial analyst conference on Jun. 28 in Las Vegas, according to its website.

"We believe the focus of the event will be on Cisco's continued transition towards a recurring software based model, as well as more executive discussion around Cisco's recently revealed Intent-based networking model," analyst Kulbinder Garcha wrote in a note to clients Thursday. "We will look for any additional disclosures and guidance related to software and subscription revenues long term."

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