Cisco shares will rise due to a big upgrade cycle for its products in the network switch market, according to Nomura Instinet.
The firm raised its rating for Cisco shares to buy from neutral, predicting the company will report higher-than-expected earnings in fiscal 2018.
The company’s shares are up 2.8 percent Monday following the report.
“We believe Cisco’s webscale switching wins are durable and its window for a campus switching refresh will extend through 2019,” analyst Jeffrey Kvaal wrote in a note to clients Monday. “Now is the time for networking juggernaut Cisco.”