Cisco: leads the DOW as broker praises outlook

(CercleFinance.com) - The Cisco stock is the largest riser in the Dow Jones on Friday, after J.
P. Morgan upgraded the stock, highlighting the network equipment manufacturer's growth prospects.

Analysts have therefore upgraded their "neutral" rating on the stock to "overweight", having increased their corresponding target price from 50 dollars to 55 dollars.

The Cisco share is currently up over 3.5% in the first hour of trading in New York, leading the Dow Jones, which is up less than 0.5% in comparison. Note that the network specialist's share has been virtually stable YTD.

In its comments, J.P. Morgan highlights the stock's low valuation, after its underperformance relative to peers such as Dell, HP and Xerox.

Analysts also highlight the strength of technology spending by companies, which they believe could prove Cisco's forecasts to be cautious.


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