Shares of Cisco Systems Inc. gained 3.1% in Monday morning trading after analysts at Instinet upgraded the stock to buy from neutral. The stock was currently the leading gainer among Dow Jones Industrial Average components. “We believe Cisco’s webscale switching wins are durable and its window for a campus switching refresh will extend through 2019,” wrote the analysts, led by Jeffrey Kvaal. “After years of false starts, Cisco now has beachheads at Microsoft Inc. , Google , and Alibaba .” Kvaal is optimistic about the campus switching refresh, which is generating higher prices, as well as the security business, which he sees gaining share either organically or via M&A. “Tax reform and the recurring revenue transition are not central to our view, though may cushion a market downturn via buybacks/dividends and rising visibility,” he added. Kvaal now has a $46 price target on the stock. Cisco shares have gained 25% over the past 12 months, while the S&P 500 Index is up 14%.
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