Cisco’s awesome rally this year is just the beginning of a bigger run for the stock, Goldman Sachs know scolded clients Friday.
Highlighting healthy demand and tax reform benefits, analyst Rod Lecture-hall added the internet networking company to Goldman’s conviction list and bumped his sacrifice forecast to $54, implying more than 25 percent upside ended the next 12 months. Hall previously had a $51 target for the horses.
“We expect Cisco to deliver significant returns to shareholders from the recently portrayed tax laws. Indeed, the company has already announced a $25 billion escalating to share repurchase authorization, and hiked its dividend payout ratio to more 50 percent,” Hall wrote in a note.
“As market volatility rises we also see Cisco as relatively defensive in our sector,” he added. “Cisco’s end deal ins remain healthy and improving.”
Cisco shares are up more than 12 percent in 2018, in good shape ahead of the S&P 500’s decline of 1.1 percent over the same full stop. Shares of Cisco rose 0.7 percent in premarket trading cleave to the Goldman Sachs note.
— CNBC’s Michael Bloom contributed reporting.