Cisco: tops the Dow on positive comments from Deutsche Bank

(CercleFinance.com) - Cisco stood out on the New York Stock Exchange on Tuesday, reacting to positive comments from Deutsche Bank, which decided to make the network equipment manufacturer's stock a "buy idea".


At the end of trading the stock was up 3.7% at a symbolic $50.

The broker highlights the depressed market sentiment surrounding the stock, following two target revisions, as well as its cheap valuation, which shows a 35% discount to the S&P 500 index.

Deutsche Bank points out that the stock is currently trading at a P/E of 12x for 2025, compared with 19x for the S&P, a level 35% below its historical average.

While noting that the Splunk acquisition is not a game-changer, the analyst believes that the deal could hold a few pleasant surprises, and is positive ahead of the June investor meeting, prompting him to slightly raise his price target on the stock from $51 to $52.


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