Cisco Systems' (CSCO) improving revenue mix and stable margins can boost the compound annual growth rate of its earnings per share to high-single digits of 7% to 8% "looking forward," Deutsche Bank said in a Monday note.
The investment firm said tailwinds from artificial intelligence, a revamped portfolio for its campus segment, enhanced scale in security business, and more favorable near-term competitive dynamics in the networking division have improved visibility towards Cisco's mid-single-digit growth in the coming years.
Deutsche Bank upgraded Cisco to buy from hold and raised its price target to $73 from $65.
Shares of Cisco were up more than 2% in recent Monday trading.
Price: 65.44, Change: +1.35, Percent Change: +2.11