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Cisco Systems is one of Jefferies’ bets on inflation

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Cisco Systems is one of Jefferies’ bets on inflation

Cisco Systems is stepping to settle in the market after the setback and the impact caused by Russia’s war on Ukraine. in fact, its presence in Ukraine has been greatly affected The company implemented specific aid for employees who wished to leave the country and to provide cash coverage, for example, to those who remained during the conflict.

The company also presented at the Mobile World Congress at the beginning of the monththe details of what is offered Private 5G, corporate so design for this technology in corporate mode, which will boost the productivity of companies and which will be provided through global service providers and system integration partners. A private 5g red, that will reduce both the complexity of its adoption and the manifestation of risks both technical and financial and also operational.

One of his bets for a company, which he considers fargo wells it lags behind competing companies for which they bet more decisively, such as Arista. In fact, it has cut your stock recommendation to equal the market from overweight and grants a target price of $65 per share.

Its analyst Aaron Rakers says that “While we remain positive on Cisco’s execution, backlog expansion, web-scale traction and subscription renewal setup looking ahead, we are repositioning our ratings for reflection the belief of a change towards the value front, as fundamental it is a bullish potential. , presents a more convincing risk/reward configuration in Arista’s actions against Cisco”.

In its stock chart we see that the value has risen 1% in the last five trading sessions and has barely moved so far this month with slight falls of 0.23% for the value on the stock market. In the quarter, the balance is negative, with falls of close to 8% while, so far this year the downward balance remains above the digital double with cuts of 11.36%.

Cisco Systems Annual Value Quote

Cisco Systems Annual Value Quote

However, Jefferies highlights some stocks in this environment given the risk of stagflation. What he calls “ATM” stocks and quality, dividend stocks that make investors money. Dividend investment in which it includes 3M, along with ConocoPhillips or Best Buy and in which it includes Cisco Systems.

in fact, next April 27th it will pay its quarterly dividend that has been pushed to 0.38 dollars per share, with a profitability of 2.6% online with the average of its sector. And as they say from The Motley Fool, his business is big and boring, but firmly profitable, with steady growth that generates a lot of cash.

In any case, an improvement in its sales is expected in this quarter, in the results that the company will present on May 18. Consensus sales is $13.31 billion, compared to the 12,800 million dollars recorded in the same period last year. This would imply an activated year-on-year growth of 4% for the value. Already for the entire year the forecasts will reach 52,830 million dollars and for the next about 55,720 million.

From Tipranks we see that of the 17 analysts who follow the value, 9 choose to buy and 8 more for the value to keep in the portfolio. In value terms, the total cost of the media is $65.69 per share, which means giving Cisco shares a potential that is close to 17% for the value.

Cisco recommends and value target price

Cisco recommends and value target price

In addition, in the premium indicators established by Investment Strategies we see that Cisco Systems marks an improved score by two points and in consolidation mode 6.5 out of 10 possible total score points for value. Bearish in the long term, but bullish in the medium. With total momentum, slow and fast, which is positive. The volume of business is growing in the medium and long term, while volatility is mixed: it is decreasing in the long term and increasing in the medium.

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