>>Maybe the CNBC fellow was merely repeating Friday news as partial
explanation of CSCO performance so far today???
See what you think:
UPDATE) Cisco Systems Stock Sets 52-Week High As SG Cowen Turns More Bullish
Dow Jones Online News, Friday, December 18, 1998 at 17:47
NEW YORK -(Dow Jones)- Shares of Cisco Systems Inc. rose 6.6% to a
52-week high Friday after SG Cowen & analyst Chris Stix turned more
bullish on the maker of networking products.
Stix upgraded the stock to "strong buy" from "buy" and said he
expects the shares to hit $105, but didn't provide a specific time
frame. Cisco closed Friday at $90.438, up $5.563. Earlier, the stock
rose as high as $90.625, past the previous 52-week ceiling of $85 set
Wednesday. Volume of 21.6 million shares made it the most-active Nasdaq
issue.
In a research note, Stix said networking spending appears to be
outpacing other information technology spending, and Cisco seems to be
gaining share at the high end of the market.
The upgrade marks a shift for Stix, who cut his rating on the stock
to "buy" from "strong buy" in October on concerns that growth in the
enterprise networking market could slow. But he said Friday that many
enterprise customers are increasing their networking budgets.
Stix believes Cisco will outpace the networking industry in growth
next year on the strength of new products, end-to-end solutions and
voice/data/video integration initiatives.
The analyst expects Cisco soon will announce a new Catalyst 6500
Layer 3 local area networking switch and core ATM switch products for
the wide area market.
Stix said he believes Cisco will report strong results for its fiscal
second quarter, which ends in January. The analyst projects the company
earnings of 35 cents a share for the period, up from 29 cents a year
earlier, and $1.45 for fiscal 1999 ending in July, up from $1.17 in
fiscal 1998. He also raised his earnings estimate for fiscal 2000 to
$1.86 from $1.77.
schwab.com
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