POTUS needs CISCO to succeed in 5G. Reversal Trade?CISCO may have quite a burden on its shoulder as the USA/Huawei conflict continues to roll on, POTUS needs American tech companies to catch up with the Chinese tech giant in the battle to become the 5G world superpower. This is a task of immense proportions and can not be won overnight and without huge investment in R&D.
In the shorter term CISCO's chart looks very vulnerable to a breakdown from a technical perspective, but has the 200ma and $49 support level as strong support. Despite this, CSCO have been consistent on earnings so we don't see and major negative surprise, overall there may be a great opportunity for a reversal trade.
AVERAGE ANALYSTS PRICE TARGET $58.86
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO 17.77
SHORT INTEREST 1%
COMPANY PROFILE
Cisco Systems, Inc. engages in the design, manufacture, and sale of Internet Protocol based networking products and services related to the communications and information technology industry. The firm operates through the following geographical segments: the Americas, EMEA, and APJC. Its product comprises of the following categories: Switches, Routers, Wireless, Network Management Interfaces and Modules, Optical Networking, Access Points, Outdoor and Industrial Access Points, Next-Generation Firewalls, Advanced Malware Protection, VPN Security Clients, Email, and Web Security. The company was founded by Sandra Lerner and Leonard Bosack on December 10, 1984 and is headquartered in San Jose, CA.
