United Bank of Switzerland Financial is stick to its Neutral rating for Cisco Systems (CSCO) as well its target price prediction of $25.00.
UBS expects Cisco’s 2011 EPS to top out at $1.73.
In explanation of their prediction, UBS pointed to Cisco’s decision not to renew its contact with HP, meaning the latter will no longer be affiliated with the company’s global operations or exist as a certified channel after the end of April. Cisco is moving toward a new market, primarily servers with the introduction of its UCS or Unified Computing System.
This is likely to mean stiff competition between Cisco and HP, which is looking to acquire technology company 3Com in the coming year.
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