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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Scharf who wrote (10476)	11/14/1997 7:50:00 PM
From: jimleon	Read Replies (1) \| Respond to of 77400

Thomas, Yahoo has earnings estimates of 2.62 and 3.27 for fiscal year ending July 98 and 99. The p/e for fiscal year end 98 I get 31.20 (82/2.62). The p/e for year end 99 I get 25 (82/3.27). For CSCO to trade at p/e of 25 with assumption of 25% growth on 3.27 to 2000, I get a target price of 4.087 X 25= $100 per share. That is p/e of 25. What if market put csco at a premium p/e of 30 or 40? Then the target is around $150 per share. I am not a router expert but won't installations want to replace old routers with faster routers? Sort of like PC buyers wanting a new pc every 2 years. A lot also depends on Nasdaq next year, but I think CSCO has room for a surprising upside based on a mostly sideway performance for 1997, although investors can not complain with a 25% return this year. Jim