Wu added that Cisco could drop another point or two, but said he thinks the stock could increase 10 points from its current price. He cited the company's strong technology and management's willingness to change its thinking as reasons for a buy rating.
Brain Marshall, a senior equity analyst with Gleacher & Co., called the company's current restructuring the right first step.
In order to turn its stock around, Cisco needs to lower its long-term financial model and release a plan outlining how it will start to reinvigorate its product portfolio, Marshall told CNBC.
Cisco will release its fourth-quarter earnings on Wednesday.
"I think the Street obviously is not expecting much," said Marshall, who has a neutral rating on the stock. "This company is trading at a very anemic discount—roughly four times free cash flow, so people don't expect much."
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Shaw Wu's firm, Sterne Agee & Leach, makes a market in the shares of Cisco. Marshall's firm, Gleacher & Company Securities, also makes a market in the securities of Cisco.