Cisco Systems shares climbed, after Evercore analyst initiated an outperform rating on the stock.
Analysts at Evercore also set a $60 price target on the networking hardware and services company’ shares. The price target represents a potential 22% upside from the stock's previous closing price of $49.21.
Evercore analyst Amit Daryanani emphasized how investors are “underappreciating” Cisco's shift towards a more predictable and free-cash-flow-focused model. Daryanani suggested that investors evaluate the stock more on a free-cash-flow-based valuation versus a traditional price-to-earnings method.
Regarding the communications/networking industry as a whole, Evercore indicated that investment will be focused towards technologies that bolster growing bandwidth demands with an incremental approach to 5G products.