Cisco parcels will thrive due to its pivot to a more recurring revenue business perfect, according to one top Wall Street firm.
J.P. Morgan reiterated its overweight rating for Cisco’s trite, predicting the company’s recently announced mandatory subscription offering for networking directs will boost its profits.
The firm has a “favorable outlook for Cisco’s placement in software capabilities which we believe are well aligned to the transformation in the commerce from primarily proprietary hardware to proprietary software adding limberness and agility to the network,” analyst Samik Chatterjee said in a note to customers Monday. “We believe Cisco’s extensive software capabilities and recurring obligation based rev additionally call for a re-rating in the shares, which have historically exchanged at discount to software companies and to the market multiple despite a strong earnings prospect.”