Cisco Systems Inc (NASDAQ:CSCO) has been upgraded by analysts at JP Morgan. The stock has taken a major hit in 2011 however analysts at JP Morgan are very optimistic about the company for the year 2012.
Analyst Rod Hall said in note to his clients, “We believe Cisco encountered a perfect storm of multiple small issues in its fiscal-year 2011 [that] added up to a material year-over-year decline in gross margin, We do not believe this is likely to repeat in fiscal-year 2012, as many of these small problems have been addressed in our opinion.”
Now the analysts from JP Morgan expect the stock to hit $21 as compared to their earlier projection of $19. Rating for the stock has been raised to overweight as compared to earlier rating of neutral.
Cisco did face several problems in 2011 which included cut throat competition and sluggish growth in its targeted public sector markets. The company also went for downsizing and lay off 1,000 of its employees in the previous year. However the situation would be far better in the current year as forecasted by analysts.
The share price has gained 1.93 percent or $0.36 to close at $18.99 in its last trading session. The traded volume supported gain and stood at 52.93 million shares for the day as compared to its average traded volume of 43.46 million shares per day. The share price is currently trading at price to earnings of 16.49 times.Previous Post » Movers And Shakers On The Stock Market Today