JPMorgan says it may be time for investors to consider scooping up Cisco Systems as order trends normalize after a spending trough, adding that the shares trade at a cheap valuation.
Analyst Samik Chatterjee upgraded the networking stock to overweight from neutral, citing limited enterprise spending downside from current levels.
Chatterjee also views the stock as cheap, currently trading at a forward price-to-earnings ratio of 12.5.
He raised his 12-month price target to $62, up from $55 a share, reflecting 21% upside from Tuesday's close.
Cisco has risen 7.6% year to date and added about 2% before the stock market's opening bell.
Persons:
Samik Chatterjee, JPMorgan, Chatterjee, — CNBC's Michael Bloom
Organizations:
JPMorgan, Cisco Systems, Cisco