AmTech Raises Price Target on Cisco to $33 (CSCO)

American Research Technology raises its price target on Cisco (Nasdaq: CSCO) to $33 while maintaining a Buy rating.

The firm called Cisco's "April report and outlook a good send-off into the summer" as the company's business now appears to be showing signs of stabilizing after a scare in February. As investors have recently been concerned with slowdowns in the U.S. and Europe affecting Cisco's business, AmTech mentions that weakness in these markets will be "offset this quarter by strength in India, China and Japan."

While Cisco's U.S. customers have indicated that they "expect another 1-2 quarters of depressed conditions with hope for recovery in late '08 or early '09", AmTech believes that Cisco has a good position within its industry and said it would be buyers of the stock on pull-backs.

The firm raised its CY08 EPS estimate on Cisco from $1.55 to $1.59, compared to the Street consensus of $1.54.

AmTech's $33 price target represents a potential gain of about 25% from today's price of around $26.30.

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol-based networking and other products relating to the communications and information technology industry worldwide. [BCS]

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