(COMTEX) B: FS Van Kasper Initiating Coverage on Cisco Systems, Inc.
B: FS Van Kasper Initiating Coverage on Cisco Systems, Inc. With Buy Rating
SAN FRANCISCO, Dec 7, 2000 /PRNewswire via COMTEX/ -- The following is being
issued by First Security Van Kasper, a member of the National Association of
Securities Dealers, CRD number 7665:
Chet White, Networking/Communications analyst at FS Van Kasper, has initiated
coverage on Cisco Systems, Inc. (Nasdaq: CSCO $51 7/16) with a Buy rating and a
18-month price target of $70.
Below are direct quotations from Mr. Whites's research report:
-- We are initiating coverage of Cisco Systems, Inc. with a Buy rating
and an 18-month price target of $70.
-- We believe that Cisco's dominant market position in the data
equipment market and the explosive growth of the data-centric
Internet market should enable Cisco to become the dominant vendor in
the telecommunications (or more appropriately labeled
communications) market over the next three to five years.
-- As Cisco benefits from the huge demand for data networking systems,
we expect revenue to grow at a rate of 56% and 39% in FY01 and FY02,
respectively. For several years beyond 2002, we estimate that the
company can achieve a revenue growth rate of 35%+.
-- Our FY01 and FY02 EPS estimates are $0.78 and $1.04, up from
$0.53 in FY00. We believe that Cisco can sustain an EPS growth rate
of 30%+ for the next three to five years.
-- Considering Cisco Systems' leadership position in this market and
the 30-50% expected growth of this market, we believe that the
shares of Cisco Systems should trade at a P/E multiple of 67x, a
100% premium to its FY02 earnings growth rate. Applying a 67x P/E to
an FY02 earnings estimate of $1.04 per share, we are setting an
18-month price target of $70.
Investments made through FS Van Kasper: (1) are not insured by the FDIC; (2) are
not deposits or other obligations of, or guaranteed by, FSVK, Wells Fargo &
Company or any of its affiliates; (3) are not guaranteed by any Federal
governmental agency (excluding U.S. Government and federal agency securities);
and (4) are subject to investment risks, including possible loss of principal
amount invested.
The study on these pages is not a complete analysis of every material fact
regarding any company, industry or security. The opinions expressed herein
reflect the judgment of the author at this date and are subject to change
without notice. Facts have been obtained from sources considered reliable, but
are not guaranteed. Van Kasper & Company, its directors and employees and their
families may have a position in the securities of the companies described
herein, and may make purchases or sales while this report is in circulation.
Additional information is available upon request.
First Security Van Kasper was acquired by Wells Fargo & Company on October 25,
2000.
SOURCE First Security Van Kasper
CONTACT: Muller Luo of FS Van Kasper, 415-391-5600
URL: fsvk.com
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