Monday, July 21, 2008

Cisco and Sell Side Analysts


"Inevitably, stocks are more effective predictors of analyst behavior than the
analysts are of stock behavior. At times, it seems that Wall Street analysts are in the “multiple maintenance” business. When stock prices go up, estimates follow. When stock prices go down, estimates follow too."
I know I'm quoting someone with the above but I can't remember who it is.
Merrill Lynch today upgrades Cisco to buy citing overblown investor concerns round both growth prospects and margins.
I like this call. The stock is at $21, down from $33 last September and at its lowest level since mid-2006. Sure, global growth has slowed. Cisco remains a winner.
The futures are up but BofA numbers are just hitting the tape now.
long mer

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