Strategic CIO // Executive Insights & Innovation
Commentary
7/20/2009
05:28 PM
Bob Evans
Bob Evans
Commentary
Connect Directly
RSS
E-Mail
50%
50%

Cisco Upgrade To Outperform Is Led By North American CIOs

Citing "steady, modest improvement throughout the quarter" from enterprise customers in North America, a prominent securities analyst has upgraded Cisco's shares from neutral to outperform and bumped up his revenue forecast by $210 million for Q4. Are we seeing signs of the bottom?

Citing "steady, modest improvement throughout the quarter" from enterprise customers in North America, a prominent securities analyst has upgraded Cisco's shares from neutral to outperform and bumped up his revenue forecast by $210 million for Q4. Are we seeing signs of the bottom?Saying that his "field checks" show improved visibility and order trends for Cisco, Credit-Suisse analyst Paul Silverstein also took pains not to bang the drum loudly about his expectations for one of the the IT industry's bellwethers, according to TechTraderDaily.com:

"To be clear, we are not hearing about a significant, robust improvement; rather, our checks indicate that Cisco's North American enterprise business has seen steady, modest improvement throughout the quarter with Cisco gaining incremental visibility into its business and seeing modest improvement in order trends."

Silverstein raised his quarterly revenue estimate for Cisco by $210 million to $8.63 billion, which is ahead of the consensus outlook of $8.49 billion.

Other analyst firms seem to concur that while the North American market is stabilizing, problems in Europe appear to be persisting, according to Reuters:

While the U.S. economy may be at or close to bottom, Europe was still showing weakness, analysts said. "U.S. spending trends seem to be improving quarter-on-quarter, while Europe is deteriorating," UBS said in a report on global technology spending.

Reuters added that the "increasing use of the Web for downloading videos, uploading photos to share with friends, and the shift of more business processes like accounting and sales to online systems" will lead sooner or later to additional purchases of enhanced networks and related gear.

Comment  | 
Print  | 
More Insights
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest - August 20, 2014
CIOs need people who know the ins and outs of cloud software stacks and security, and, most of all, can break through cultural resistance.
Flash Poll
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.