On Tuesday, Morgan Stanley (NYSE:MS) reinstated its coverage on Cisco Systems Inc. (NASDAQ:CSCO) stock, assigning an Overweight rating, along with a price target of $58.00. The firm highlighted the potential for positive estimate revisions in the future, noting that the consensus has not yet factored in the impact of the Splunk (NASDAQ:SPLK) acquisition.
The analyst from Morgan Stanley pointed out that while a significant catalyst for estimate revisions could be one to two quarters away, the current trading value of Cisco at a more than seven times discount compared to the S&P 500 Index presents an attractive opportunity.
With the company offering a double-digit shareholder return and the prospect of story catalysts, the firm believes there is considerable value that warrants engagement with the stock at this time.
Cisco, a leading provider of networking hardware, software, and telecommunications equipment, recently acquired Splunk Inc ., which specializes in the analysis of big data. The integration of Splunk's capabilities is expected to enhance Cisco's product offerings and may contribute to future financial performance improvements.
The Overweight rating suggests that Morgan Stanley sees Cisco's stock as a better value than the average stock within the analyst's coverage universe. The $58.00 price target indicates the firm's expectation for the stock's potential rise from its current trading level.
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