Cisco Systems (CSCO): Key Points From Cisco Live! - Drexel Hamilton

Drexel Hamilton analyst Brian White noted that Cisco (NASDAQ: CSCO) is focusing on security in this year's Cisco Live! conference. The security market has been an increasingly important priority for Cisco in recent years and yesterday's announcement highlights further integration of security into the network. During 3Q:FY16, Cisco grew security revenue by 17% YoY and increased deferred revenue by 31%, while advanced threat security and web security solutions grew by over 100% and 50% respectively. During 3Q:FY16, Cisco was operating at an annual run rate in security of $1.93 billion. Last summer the company targeted security sales to grow by 10-15% per annum over the next 3-5 years.

Given Cisco's excellent execution in recent quarters, expanding product portfolio, 3.5% dividend yield, a cash rich balance sheet and a depressed valuation at 9.4x (ex-cash) CY:17 EPS, the stock represents an attractive value with defensive characteristics and has further upside potential.

No change to Buy rating or price target of $36.00

For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $29.43 yesterday.

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