Despite concerns, Piper ups Cisco target to $52 after 'very positive' Q2
Cisco Systems last night reported a "very positive" fiscal Q2 that exceeded expectations around all metrics, Piper Jaffray analyst James Fish tells investors in a research note. While the upside in the quarter "was strong," the company on a normalized organic basis only grew 3.2% year-over-year and guided Q3 to 1%-3% normalized organic growth, adds the analyst. Further, he points out that ASC606 alone contributed ~30% of ex-SPVS growth in Q2, "which is not sustainable." Fish believes Cisco shares can continue to "grind higher" but he's becoming "increasingly concerned" around tougher compares, higher expectations, and on-premise infrastructure spending. Though preferring other names, the analyst maintains an Overweight rating on Cisco. He upped his price target for the stock to $52 from $50.