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					                            North America United States
Company

                            TMT Wireless Equipment

                            3 February 2010
                                                                                                                                                           Results
                            Cisco Systems
                            Reuters: CSCO.OQ                  Bloomberg: CSCO UW                   Exchange: NSM       Ticker: CSCO                         Buy
                                                                                                                                                           Price at 3 Feb 2010 (USD)                                      23.07

                            Q2 FY10 Results
  Global Markets Research




                                                                                                                                                           Price target                                                   30.00
                                                                                                                                                           52-week range                                          24.94 - 13.62

                                                                                                                                                            Key changes
                                                                                                                                                           EPS (USD)                           1.22 to 1.24                    1.2%
                                                                                                                                                           Revenue (USDm)              37,611.2 to 39,286.5                    4.5%
                            Brian Modoff                                       Jonathan Goldberg, CFA Vijay Bhagavath, Ph.D
                            Research Analyst                                   Research Analyst                        Research Associate                  Price/price relative
                            (+1) 415 617-4237                                  (+1) 415 617-4259                       (+1) 415 617-3324
                                                                                                                                                              36
                            brian.modoff@db.com                                jonathan.goldberg@db.com                vijay.bhagavath@db.com
                                                                                                                                                              32
                                                                                                                                                              28
                            Solid quarter; reiterate Buy on positive outlook and strong order trends                                                          24
                            Solid numbers from Cisco, with revenues of $9.8b and PF EPS of $0.40, both a                                                      20
                            strong beat versus our estimate and consensus. PF gross margin was 65.6%, with                                                    16
                            30.3% operating margin. Cisco's Q3 outlook calls for +3.5% sequential revenue                                                     12

                            growth on the mid-point (23% to 26% year over year). The stock is yet to price-in                                                      2/07      8/07       2/08      8/08     2/09       8/09
                            upside from solid acceptance of their newly launched products in datacenters,                                                                      Cisco Systems

                            routing, video, and wireless opportunities. Reiterate Buy and $30 price target.                                                                    S&P 500 INDEX (Rebased)

                                                                                                                                                           Performance (%)              1m                 3m                  12m
                            Order trends signal continued recovery in enterprise and carrier spending                                                      Absolute                    -3.6                0.5                 47.7
                            Segment results were highlighted by signs of continued recovery in IT spending                                                 S&P 500 INDEX               -1.6                5.0                 30.9
                            and a high single- to double-digit ramp in order bookings across sales theaters and
                                                                                                                                                           Stock & option liquidity data
                            major product categories. We expect these trends to continue in Q3 and into
                                                                                                                                                           Market Cap (USDm)                                          132,099.0
                            FY11. On a year-over-year basis, order trends were especially strong in the US,                                                Shares outstanding (m)                                        5,726.0
                            Japan, and APAC (up in the low-to-mid double-digits), flat in Emerging Markets,                                                Free float (%)                                                    100
                            and up mid single-digit in Europe.                                                                                             Volume (3 Feb 2010)                                       19,304,985
                                                                                                                                                           Option volume (und. shrs., 1M avg.)                        6,834,584
                            Solid new products lever earnings and growth profile
                            The story at Cisco is changing. Several of its newly launched products – UCS,                                                  Implied & Realized Volatility (3M)
                            Nexus, ASR, video, etc. are at inflection points in their respective markets,
                                                                                                                                                             100%
                            increasing Cisco’s opportunity from +$80B to +$140B over the next several years.                                                 80%
                            We see Cisco as a company in transition – from a switch and router vendor to a                                                   60%
                            provider of ‘specialized’ IT equipment and services. We see meaningful prospects                                                 40%

                            for upside to our FY10/11 estimates, based on the solid acceptance of their new                                                  20%
                                                                                                                                                              0%
                            products and the continued recovery in global IT spending. Reiterate Buy.
                                                                                                                                                                    Jan 07    Jul 07     Jan 08   Jul 08    Jan 09    Jul 09

                            Valuation and risks                                                                                                                                Realized Vol           Implied Vol (ATM)


                            Our $30 price target is derived using the DCF method. For our DCF, we assume a
                            discount rate of 11% and a 3.5% growth rate. Downside risks include                                                            Implied Volatility (3M, ATM) vs. Peers
                            unpredictable shifts in IT spending patterns and a highly competitive industry
                                                                                                                                                               AA…
                            which brings constant pricing pressure on many of Cisco’s products across market                                                                                                              41.2%


                            segments.                                                                                                                         QC…                                          29.2%

                                                                                                                                                              HP …                                         29.2%

                                                                                                                                                               CS…                                         29.1%
                                Forecasts and ratios                                                                                                           IB…                                21.2%

                            Year End Jul 31                                     2009A                 2010E                       2011E
                                                                                                                                                                          *Weighted-avg. of index components
                                                                                Actual          FAS123R1          Proforma     FAS123R1         Proforma                         Data as of 18-Aug-09

                            1Q EPS                                                0.37                0.30A         0.36A             0.33          0.41
                            2Q EPS                                                0.26                0.32A         0.40A             0.35          0.43
                            3Q EPS                                                0.23                     0.30       0.38            0.36          0.44
                            4Q EPS                                                0.19                     0.31       0.40            0.37          0.45
                            FY EPS (USD)                                          1.05                     1.24       1.54            1.40          1.73
                            P/E (x)                                               17.7                     18.7          –            16.4             –
                            Revenue (USDm)                                  36,117.0              39,286.5               –      44,220.4               –
                            Source: Deutsche Bank estimates, company data
                            1
                                Includes the impact of FAS123R requiring the expensing of stock options.



                            Deutsche Bank Securities Inc.
                            All prices are those current at the end of the previous trading session unless otherwise indicated. Prices are sourced from local
                            exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies. Deutsche
                            Bank does and seeks to do business with companies covered in its research reports. Thus, investors should be aware that the firm
                            may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single
                            factor in making their investment decision. Independent, third-party research (IR) on certain companies covered by DBSI's research
                            is available to customers of DBSI in the United States at no cost. Customers can access IR at
                            http://gm.db.com/IndependentResearch or by calling 1-877-208-6300. DISCLOSURES AND ANALYST CERTIFICATIONS ARE
                            LOCATED IN APPENDIX 1. MICA(P) 106/05/2009
3 February 2010               Wireless Equipment Cisco Systems

Model updated:04 February 2010                                         Fiscal year end 31-Jul                          2006     2007     2008      2009     2010E    2011E
Running the numbers                                                    Financial Summary
North America                                                          DB EPS (USD)                                     0.89      1.17     1.31     1.05      1.24      1.40
                                                                       Reported EPS (USD)                               0.89      1.17     1.31     1.05      1.24      1.40
United States                                                          DPS (USD)                                        0.00      0.00     0.00     0.00      0.00      0.00
Wireless Equipment                                                     BVPS (USD)                                       3.88      5.20     5.74     6.63      7.66      8.64

                                                                       Valuation Metrics
                                                                       Price/Sales (x)                                   4.1       4.5      4.1      3.0       3.4       3.0
Cisco Systems                                                          P/E (DB) (x)                                     21.3      22.0     20.7     17.7      18.7      16.4
                                                                       P/E (Reported) (x)                               21.3      22.0     20.7     17.7      18.7      16.4
Reuters: CSCO.OQ                        Bloomberg: CSCO UW             P/BV (x)                                          4.6       5.6      3.8      3.3       3.0       2.7

Buy                                                                    FCF yield (%)                                      6.1      5.7      6.7       8.2      7.5       8.8
                                                                       Dividend yield (%)                                 0.0      0.0      0.0       0.0      0.0       0.0
Price (3 Feb 10)                                         USD 23.07
                                                                       EV/Sales                                          3.7       4.0      3.6      2.3       2.6       2.2
Target price                                             USD 30.00     EV/EBITDA                                        12.7      14.0     12.8      9.2       9.4       8.0
52-week Range                                USD 13.62 - 24.94         EV/EBIT                                          15.1      16.3     15.1     11.4      11.4       9.4
Market Cap (m)                                 USDm 132,099
                                                EURm 94,942            Income Statement (USDm)
                                                                       Sales                                       28,484       34,922   39,540   36,117    39,287    44,220
Company Profile                                                        EBITDA                                       8,289       10,034   11,186    9,090    11,016    11,994
Cisco Systems is the leading global supplier of data                   EBIT                                         6,996        8,621    9,442    7,322     9,072    10,223
networking products. The company's IP based networking
                                                                       Pre-tax profit                               7,633        9,461   10,255    7,693     9,180    10,575
solutions, including routers and Ethernet switches, are
installed   at   corporations, public  institutions and                Net income                                   5,580        7,333    8,052    6,134     7,217     8,249
telecommunication companies worldwide.
                                                                       Cash Flow (USDm)
                                                                       Cash flow from operations                        7,899   10,104   12,089     9,897   11,021    13,007
                                                                       Net Capex                                         -772   -1,251   -1,268    -1,005   -1,166    -1,327
                                                                       Free cash flow                                   7,127    8,853   10,821     8,892    9,855    11,681
                                                                       Equity raised/(bought back)                     -6,613   -2,375   -7,324    -2,748   -3,808    -4,000
                                                                       Dividends paid                                       0        0        0         0        0         0
Price Performance                                                      Net inc/(dec) in borrowings                          0        0        0     3,491    3,944    -2,000
                                                                       Other investing/financing cash flows            -1,959   -6,047   -2,034    -9,108   -1,926    -1,200
   36                                                                  Net cash flow                                   -1,445      431    1,463       527    8,065     4,481
   32
   28                                                                  Change in working capital                          480    2,056    2,432     1,163      602     1,429
   24
   20
   16                                                                  Balance Sheet (USDm)
   12                                                                  Cash and cash equivalents                    3,297        3,728    5,191    5,718     7,543    12,024
        Feb 07 Aug 07     Feb 08 Aug 08           Feb 09 Aug 09        Property, plant & equipment                  3,440        3,893    4,151    4,043     3,570     3,126
                                                                       Goodwill                                     9,227       12,121   12,392   12,925    14,423    14,423
              Cisco Systems             S&P 500 INDEX (Rebased)        Other assets                                27,351       33,598   37,000   45,442    53,139    54,854
                                                                       Total assets                                43,315       53,340   58,734   68,128    78,675    84,427
Margin Trends                                                          Debt                                         6,332        6,408    6,893   10,295    14,194    12,194
                                                                       Other liabilities                           13,065       15,442   17,439   19,156    20,592    22,536
   30
   28                                                                  Total liabilities                           19,397       21,850   24,332   29,451    34,786    34,730
   26                                                                  Total shareholders' equity                  23,918       31,490   34,402   38,677    43,889    49,698
   24                                                                  Net debt                                     3,035        2,680    1,702    4,577     6,651       170
   22
   20
                                                                       Key Company Metrics
             06      07            08        09         10E      11E   Sales growth (%)                                   nm      22.6     13.2      -8.7      8.8      12.6
                                                                       DB EPS growth (%)                                   na     31.6     11.6     -19.8     18.0      13.6
                  EBITDA Margin                    EBIT Margin
                                                                       Payout ratio (%)                                   0.0      0.0      0.0       0.0      0.0       0.0
Growth & Profitability
                                                                       EBITDA Margin (%)                                29.1      28.7     28.3     25.2      28.0      27.1
   25                                                             30   EBIT Margin (%)                                  24.6      24.7     23.9     20.3      23.1      23.1
   20                                                             25
   15                                                             20   ROE (%)                                          23.3      26.5     24.5     16.8      17.5      17.6
   10
    5                                                             15
    0                                                             10   Net debt/equity (%)                              12.7       8.5      4.9     11.8      15.2       0.3
   -5
  -10                                                             5    Net interest cover (x)                            nm        nm       nm       nm        nm        nm
  -15                                                             0
             06     07        08        09        10E    11E
                                                                       DuPont Analysis
                                                                       EBIT margin (%)                                  24.6      24.7     23.9      20.3     23.1      23.1
                           Sales growth (LHS)
                                                                       x Asset turnover (x)                              0.7       0.7      0.7       0.6      0.5       0.5
Solvency                                                               x Financial cost ratio (x)                        1.1       1.1      1.1       1.1      1.0       1.0
                                                                       x Tax and other effects (x)                       0.7       0.8      0.8       0.8      0.8       0.8
   20                                                                  = ROA (post tax) (%)                             12.9      15.2     14.4       9.7      9.8      10.1
   15                                                                  x Financial leverage (x)                          1.8       1.7      1.7       1.7      1.8       1.7
   10                                                                  = ROE (%)                                        23.3      26.5     24.5      16.8     17.5      17.6
   5                                                                   annual growth (%)                                  na      13.5     -7.6     -31.3      4.1       0.8
                                                                       x NTA/share (avg) (x)                             3.8       4.4      5.3       6.2      7.1       8.0
   0
             06      07            08        09         10E      11E   = Reported EPS                                   0.89      1.17     1.31      1.05     1.24      1.40
                                                                       annual growth (%)                                  na      31.6     11.6     -19.8     18.0      13.6
                        Net debt/equity (LHS)
                                                                       Source: Company data, Deutsche Bank estimates

Brian Modoff
+1 415 617-4237                              brian.modoff@db.com



Page 2                                                                                                                                        Deutsche Bank Securities Inc.
3 February 2010    Wireless Equipment Cisco Systems


                                 Quarter Results
                                 Cisco reported solid numbers with revenues of $9.8 billion and pro-forma EPS of $0.40.
                                 Revenues came in ahead our estimate and consensus of $9.4 billion (up +9% sequentially
                                 and 8% year-over-year). Pro-forma EPS beat our estimate and consensus of $0.35. The
                                 company reported a pro-forma gross margin of 65.6% (down -70bps sequentially) and
                                 operating margin of 30.3% (up +100bps sequentially).

                                 On a geographic basis, North America contributed to 54% of revenues, followed by the
                                 Europe at 20%, Emerging Markets at 11%, Asia Pacific at 11%, and Japan at 4%.

                                 Segment review
                                 Segment results were highlighted by management as a continued sign of a recovery in IT
                                 spending growth and a high single- to double-digit ramp in order bookings across sales
                                 theaters and major product categories. We expect this trend to continue in Q3 and into FY11.
                                 On a year-over-year basis, order trends were particularly strong in the US, Japan, and APAC
                                 (up in the low-to-mid double-digits), flat in Emerging Markets, and up mid single-digit in
                                 Europe.

                                 Product revenues generated $8.0 billion for the quarter (81% of revenues; +11%
                                 sequentially), while services revenues came-in at $1.8 billion (19% of revenues; +100bps
                                 sequentially).

                                 Figure 1 summarizes Cisco’s product segment performance across their key product
                                 categories. We believe that Cisco’s routing business was helped by the year-end budget
                                 flush and strong performance of its high-end (e.g. CRS-1) routers. The switching business had
                                 the highest sequential revenue growth in a decade, helped by gains in modular and fixed
                                 Catalyst and Nexus switches. Overall, we see signs of a sooner-than-anticipated recovery in
                                 the enterprise switching upgrade cycle, especially from Cisco’s mid-to-large enterprise and
                                 datacenter provider customer base.

                                 Cisco’s advanced technology and emerging technology product portfolio show strong
                                 revenue growth, indicative of a spending environment that is biased towards purchasing new
                                 technology solutions, with continued growth in IP traffic, and with CIOs looking for new
                                 architectures for realizing meaningful cost savings.

                                  Figure 1: Cisco - product segment analysis
                                                                           Q2 FY10              Q2 FY10
                                  Product Category                                                              QoQ     YoY
                                                                          (Revenues)       (as % of revenues)

                                   Routers                                        $1,559         15.9%          -1.0%    2.6%
                                   Switches                                       $3,432         34.9%          19.5%   13.8%
                                   Advanced Technology                            $2,381         24.3%          4.8%    -0.5%
                                   Other                                            $604         6.2%           25.6%   44.5%
                                  Total Product                                   $7,976         81.3%          10.8%    8.6%
                                  Service                                         $1,839         18.7%          1.0%    5.6%
                                  Total Revenue                                   $9,815        100.0%          8.8%     8.0%
                                 Source: Deutsche Bank and Company Data



                                 Balance sheet
                                 The company closed the fiscal year with $39.6 billion in cash, up, from $35.4 billion in Q1.
                                 DSOs came in at 39 days, from 32 days in Q1, as the quarter was back-end loaded due to
                                 longer lead times and strong revenue ramps across product categories.

                                 Inventory turns, on a non-GAAP basis, stood at 11.7x, up slightly from 11.3x in Q1. Raw
                                 materials increased from $167 million to $248 million sequentially, almost entirely due to
                                 Cisco increasing the stock of long lead time components (logic chips, etc). Product book to


Deutsche Bank Securities Inc.                                                                                                 Page 3
3 February 2010   Wireless Equipment Cisco Systems


                                bill remained around 1.0. Cash flow from operations during the quarter was $2.5 billion,
                                compared to $1.5 billion in Q1.

                                Guidance
                                Management offered a positive outlook for Q3 FY10, calling for revenues to be up 23% to
                                26% on an annual basis, i.e. in the $10.0 billion to $10.3 billion range versus consensus of
                                $9.5 billion. Cisco’s Q3 guide implies a sequential revenue growth of +3.5% at the mid-point.
                                Imputed in the guidance is an extra work week in Q3.

                                The company expects gross margins to be in the 64% to 65% range with the caveat that
                                gross margins could be impacted by product mix and unit volumes. Opex is expected to be
                                36.5% to 37% of Q3 revenues. Operating cash flow is expected to be in the $2.0 billion to
                                $2.5 billion, and GAAP EPS 6-8 cents lower than pro-forma EPS.

                                The company’s Q3 outlook assumes a non-GAAP effective tax rate of approximately 22%.

                                Based on Cisco’s Q2 results, Q3 outlook, and the enterprise and carrier IT spending
                                environment, we revise our pro-forma estimates, summed below:

                                3Q10E was $9.6 billion and $0.36, is $10.1 billion and $0.38
                                4Q10E was $9.7 billion and $0.37, is $10.3 billion and $0.40
                                FY10E was $37.6 billion and $1.44, is $39.3 billion and $1.54
                                FY11E was $40.9 billion and $1.63, is $44.2 billion and $1.73
                                CY10E was $38.9 billion and $1.50, is $41.6 billion and $1.61
                                CY11E was $41.9 billion and $1.70, is $46.1 billion and $1.82
                                Conclusions
                                Our latest round of checks suggest that Cisco remains well-positioned, both across their
                                products portfolio and across their worldwide sales theaters, with Europe showing signs of
                                an April quarter recovery, and with the US and APAC theaters remaining strong through 2010.
                                We see no slowdown in order trends or deployment activity in the foreseeable future.

                                We discuss below color across their product portfolio, based on our checks.

                                     Cisco’s UCS, Nexus, and security equipment are starting to see production network
                                     traction at several major NY banks, west coast high-tech companies, private cloud
                                     service providers, and credit card processing firms. For CY10, we estimate roughly +$1
                                     billion in Nexus switch sales, +$350 million in UCS sales in the US, with parts of Western
                                     Europe and developed Asia contributing to +10% of our US estimate in the CY11/12
                                     timeframe. We also expect the VAR channel to ramp up UCS, Nexus and storage
                                     systems sales in Q3.

                                     In the enterprise market, we continue to see the public sector, financial services, and
                                     technology verticals to be among the leading spenders of Cisco’s enterprise networking
                                     gear in 2010+, followed by healthcare, which we believe is a 2H10+ opportunity. Cisco
                                     continues to benefit from a long-tail upgrade cycle for their Catalyst switch installed
                                     base, with server virtualization and cabling consolidation via FCoE driving the
                                     deployments of their newly-launched UCS server and Nexus switches in the datacenter,
                                     and IP video, Wi-Fi (802.11n), and Power-over-Ethernet driving the campus switch,
                                     enterprise edge-router (‘ISR’) and security appliance upgrades.

                                     In the service provider market, our checks continue to point to a graduated ramp in the
                                     adoption of Cisco’s ASR 1k/9k series edge-routers and CRS-1 core-routers into their
                                     carrier installed base. We think that Cisco could see share gains, versus Ericsson and
                                     Juniper in multi-services edge routing opportunities, based on the strong acceptance of
                                     their ASR portfolio and associated software-oriented services-enabling capabilities (e.g.
                                     policy, QoS, enhanced charging, user analytics etc). Fiscal Q3 could see an uptick in

Page 4                                                                                              Deutsche Bank Securities Inc.
3 February 2010    Wireless Equipment Cisco Systems


                                      routing revenues based on deployment of the ASR 1k/9k routers at Verizon, AT&T, and
                                      other Tier-1 operators, in backhaul and multi-services delivery upgrades.

                                      Cisco’s Telepresence and Webex collaboration solutions continue to be pro-cyclical with
                                      the current expense-averse business environment, and stand to benefit from the planned
                                      absorption of Tandberg video conferencing business into Cisco, sometime in Fiscal Q3
                                      or Q4, at the earliest. Our checks indicate that Cisco’s worldwide VAR channel see
                                      meaningful incentive, in terms of attractive pre/post-sales video solutions integration
                                      opportunities, with both the Tandberg and Cisco’s video conferencing gear.
                                      Deployments involving carrier managed video collaboration services are likely to ramp up
                                      in Q3 and into the back-half of 2010, as well.

                                      In the Layer 4-7 market, our checks suggest that Cisco is likely to gain share in the WAN
                                      optimization and application acceleration market from players such as Blue Coat, Citrix,
                                      and Riverbed as solutions-level ‘bundled’ bids are the trend in 2010. Cisco is likely to
                                      leverage its partnership with Microsoft to ramp up sales for its WAN optimization
                                      solutions through the VAR channel.
                                 In sum, we think that the story at Cisco is changing. Unlike its peers, several of its newly
                                 launched products – UCS, Nexus, ASR, video, mobile Internet etc. are at inflection points in
                                 their respective markets, which, according to management, collectively increase Cisco’s
                                 opportunity from +$80 billion to +$140 billion over the next several years (+$100 billion for IT
                                 infrastructure equipment by our estimates; see Figure 2). We see Cisco as a company in
                                 transition – from a switch and router vendor to a provider of ‘specialized’ IT equipment and
                                 services.

                                 We see meaningful prospects for upside to our FY10/11 estimates, based on the solid
                                 acceptance of their new products and the continued recovery in global IT spending, driving
                                 leverage to their earnings and longer-term growth profile. Reiterate Buy.


                                 Valuation
                                 Our $30 price target is based on our updated forward estimates. We have established our
                                 price target using discounted cash flow (DCF) analysis. For our DCF, we assume a discount
                                 rate of 11% and a 3.5% growth rate. Our discount rate is derived on a weighted average cost
                                 of capital basis using a risk-free rate of 5.5%, beta of 1.1, and an equity risk premium of 5%.
                                 Our growth rate is based on a long-term estimate of industry growth.

                                 Risks
                                 We see two primary sources of risk to our price target. The first is centered on macro-
                                 economic growth. Company earnings, the ultimate source of our valuation model, are largely
                                 a function of corporate investment patterns. To the extent that carrier or enterprise IT
                                 spending declines as a result of macro-economic conditions our price target would be at risk.
                                 Secondly, the data networking industry is undergoing constant technological change, should
                                 Cisco fail to keep up with this change their product sets would be at risk of being swapped
                                 out by other vendors. Competition remains fierce in the sector and pricing remains under
                                 pressure for most of the company’s products.




Deutsche Bank Securities Inc.                                                                                             Page 5
3 February 2010              Wireless Equipment Cisco Systems


Figure 2: DB estimate of Cisco’s infrastructure IT equipment opportunity

                                                                                    Addressable Market
                                                       Product/ Technology Category Estimates ($B; 2012+)

                                                     Enterprise LAN Equipment                         $26

                                                     Enterprise WAN Edge
                                                     Equipment                                        $13

                                                     Enterprise Voice and Unified
                                                     Communications                                   $20

                                                     Virtualized Datacenter - Server
                                                     and Switching                                    $20

                                                     Service Provider - Routing and
                                                     Switching                                        $14

                                                     Video and Web Collaboration                       $4

                                                     Applications Networking                           $3

                                                     Total                                           $100
Source: Deutsche Bank, Gartner, IDC, Infonetics, and Company Data




Page 6                                                                                                      Deutsche Bank Securities Inc.
3 February 2010          Wireless Equipment Cisco Systems




Appendix 1
Important Disclosures
Additional information available upon request
Disclosure checklist
Company                                                           Ticker                      Recent price*                                Disclosure
Cisco Systems                                                     CSCO.OQ                     23.07 (USD) 3 Feb 10                         1,2,6,7,8,14,15,17
*Prices are sourced from local exchanges via Reuters, Bloomberg and other vendors. Data is sourced from Deutsche Bank and subject companies.


Important Disclosures Required by U.S. Regulators
Disclosures marked with an asterisk may also be required by at least one jurisdiction in addition to the United States. See
“Important Disclosures Required by Non-US Regulators” and Explanatory Notes.
1. Within the past year, Deutsche Bank and/or its affiliate(s) has managed or co-managed a public or private offering for this
    company, for which it received fees.

2.    Deutsche Bank and/or its affiliate(s) makes a market in securities issued by this company.

6.    Deutsche Bank and/or its affiliate(s) owns one percent or more of any class of common equity securities of this company
      calculated under computational methods required by US law.

7.    Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
      banking or financial advisory services within the past year.

8.    Deutsche Bank and/or its affiliate(s) expects to receive, or intends to seek, compensation for investment banking services
      from this company in the next three months.

14. Deutsche Bank and/or its affiliate(s) has received non-investment banking related compensation from this company within
    the past year.

15. This company has been a client of Deutsche Bank Securities Inc. within the past year, during which time it received non-
    investment banking securities-related services.


Important Disclosures Required by Non-U.S. Regulators
Please also refer to disclosures in the “Important Disclosures Required by US Regulators” and the Explanatory Notes.
1. Within the past year, Deutsche Bank and/or its affiliate(s) has managed or co-managed a public or private offering for this
    company, for which it received fees.

2.    Deutsche Bank and/or its affiliate(s) makes a market in securities issued by this company.

6.    Deutsche Bank and/or its affiliate(s) owns one percent or more of any class of common equity securities of this company
      calculated under computational methods required by US law.

7.    Deutsche Bank and/or its affiliate(s) has received compensation from this company for the provision of investment
      banking or financial advisory services within the past year.

17. Deutsche Bank and or/its affiliate(s) has a significant Non-Equity financial interest (this can include Bonds, Convertible
    Bonds, Credit Derivatives and Traded Loans) where the aggregate net exposure to the following issuer(s), or issuer(s)
    group, is more than 25m Euros.


For disclosures pertaining to recommendations or estimates made on securities other than the primary subject of this
research, please see the most recently published company report or visit our global disclosure look-up page on our
website at http://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=CSCO.OQ.




Deutsche Bank Securities Inc.                                                                                                                                   Page 7
3 February 2010                 Wireless Equipment Cisco Systems


Analyst Certification
The views expressed in this report accurately reflect the personal views of the undersigned lead analyst(s) about the subject
issuer and the securities of the issuer. In addition, the undersigned lead analyst(s) has not and will not receive any
compensation for providing a specific recommendation or view in this report. Brian Modoff




Historical recommendations and target price: Cisco Systems (CSCO.OQ)
(as of 2/3/2010)
                  40.00                                                                                                        Previous Recommendations

                                                3                                                                                 Strong Buy
                  35.00                 2                                                                                         Buy
                                        2       3                                                                                 Market Perform
                        1
                  30.00 1                                                                                                         Underperform
                                                                                                                                  Not Rated
                                                                                                                                  Suspended Rating
                  25.00                                  4                                                9     10
S ecurity Price




                                                                                                                                Current Recommendations
                                                                             5                        8
                  20.00                                                      6                                                    Buy
                                                                             5 7
                                                                             6                                                    Hold
                                                                                                                                  Sell
                  15.00                                                                                                           Not Rated
                                                                                                                                  Suspended Rating
                  10.00                                                                                                     *New Recommendation Structure
                                                                                                                              as of September 9, 2002
                   5.00


                   0.00
                      Feb 07 May 07 Aug 07 Nov 07 Feb 08 May 08 Aug 08 Nov 08 Feb 09 May 09 Aug 09 Nov 09
                                                                     Da te
     1.            2/7/2007:     Buy, Target Price Change USD32.00                 6.    11/6/2008:       Buy, Target Price Change USD20.00
     2.            8/8/2007:     Buy, Target Price Change USD37.00                 7.    12/9/2008:       No Recommendation, Target Price Change USD0.00
     3.            11/8/2007:    Buy, Target Price Change USD38.00                 8.    7/1/2009:        Buy, Target Price Change USD26.00
     4.            2/7/2008:     Buy, Target Price Change USD30.00                 9.    8/6/2009:        Buy, Target Price Change USD28.00
     5.            11/4/2008:    Buy, Target Price Change USD23.00                 10.   11/5/2009:       Buy, Target Price Change USD30.00




Page 8                                                                                                                        Deutsche Bank Securities Inc.
3 February 2010     Wireless Equipment Cisco Systems



Equity rating key                                             Equity rating dispersion and banking relationships

Buy: Based on a current 12- month view of total share-
holder return (TSR = percentage change in share price            450                             50%
from current price to projected target price plus pro-           400        46%
jected dividend yield ) , we recommend that investors            350
                                                                 300
buy the stock.                                                   250
Sell: Based on a current 12-month view of total share-           200              37%                  31%
holder return, we recommend that investors sell the              150
stock                                                            100
                                                                  50                                                3% 32%
Hold: We take a neutral view on the stock 12-months                0
out and, based on this time horizon, do not recommend
                                                                              Buy                Hold                Sell
either a Buy or Sell.
Notes:
1. Newly issued research recommendations and target                          Companies Covered    Cos. w/ Banking Relationship
prices always supersede previously published research.                                North American Universe
2. Ratings definitions prior to 27 January, 2007 were:
     Buy: Expected total return (including dividends) of
     10% or more over a 12-month period
     Hold: Expected total return (including dividends)
     between -10% and 10% over a 12-month period
     Sell: Expected total return (including dividends) of -
     10% or worse over a 12-month period




Deutsche Bank Securities Inc.                                                                                                    Page 9
3 February 2010   Wireless Equipment Cisco Systems


Regulatory Disclosures
1. Important Additional Conflict Disclosures
Aside from within this report, important conflict disclosures can also be found at https://gm.db.com/equities under the
"Disclosures Lookup" and "Legal" tabs. Investors are strongly encouraged to review this information before investing.




2. Short-Term Trade Ideas
Deutsche Bank equity research analysts sometimes have shorter-term trade ideas (known as SOLAR ideas) that are consistent
or inconsistent with Deutsche Bank's existing longer term ratings. These trade ideas can be found at the SOLAR link at
http://gm.db.com.




3. Country-Specific Disclosures
Australia: This research, and any access to it, is intended only for "wholesale clients" within the meaning of the Australian
Corporations Act.
EU countries: Disclosures relating to our obligations under MiFiD can be found at http://globalmarkets.db.com/riskdisclosures.
Japan: Disclosures under the Financial Instruments and Exchange Law: Company name - Deutsche Securities Inc. Registration
number - Registered as a financial instruments dealer by the Head of the Kanto Local Finance Bureau (Kinsho) No. 117.
Member of associations: JSDA, The Financial Futures Association of Japan. Commissions and risks involved in stock
transactions - for stock transactions, we charge stock commissions and consumption tax by multiplying the transaction
amount by the commission rate agreed with each customer. Stock transactions can lead to losses as a result of share price
fluctuations and other factors. Transactions in foreign stocks can lead to additional losses stemming from foreign exchange
fluctuations.
New Zealand: This research is not intended for, and should not be given to, "members of the public" within the meaning of the
New Zealand Securities Market Act 1988.
Russia: This information, interpretation and opinions submitted herein are not in the context of, and do not constitute, any
appraisal or evaluation activity requiring a license in the Russian Federation.




Page 10                                                                                            Deutsche Bank Securities Inc.
Deutsche Bank Securities Inc.

North American locations

Deutsche Bank Securities Inc.                            Deutsche Bank Securities Inc.                             Deutsche Bank Securities Inc.                             Deutsche Bank Securities Inc.
60 Wall Street                                           225 Franklin Street                                       222 South Riverside Plaza                                 3033 East First Avenue
New York, NY 10005                                       25th Floor                                                30th Floor                                                Suite 303, Third Floor
Tel: (212) 250 2500                                      Boston, MA 02110                                          Chicago, IL 60606                                         Denver, CO 80206
                                                         Tel: (617) 988 8600                                       Tel: (312) 537-3758                                       Tel: (303) 394 6800


Deutsche Bank Securities Inc.                            Deutsche Bank Securities Inc.                             Deutsche Bank Securities Inc.
1735 Market Street                                       101 California Street                                     700 Louisiana Street
24th Floor                                               46th Floor                                                Houston, TX 77002
Philadelphia, PA 19103                                   San Francisco, CA 94111                                   Tel: (832) 239-4600
Tel: (215) 854 1546                                      Tel: (415) 617 2800




International locations

Deutsche Bank Securities Inc.                            Deutsche Bank AG London                                   Deutsche Bank AG                                          Deutsche Bank AG
60 Wall Street                                           1 Great Winchester Street                                 Große Gallusstraße 10-14                                  Deutsche Bank Place
New York, NY 10005                                       London EC2N 2EQ                                           60272 Frankfurt am Main                                   Level 16
United States of America                                 United Kingdom                                            Germany                                                   Corner of Hunter & Phillip Streets
Tel: (1) 212 250 2500                                    Tel: (44) 20 7545 8000                                    Tel: (49) 69 910 00                                       Sydney, NSW 2000
                                                                                                                                                                             Australia
                                                                                                                                                                             Tel: (61) 2 8258 1234
Deutsche Bank AG                                         Deutsche Securities Inc.
Level 55                                                 2-11-1 Nagatacho
Cheung Kong Center                                       Sanno Park Tower
2 Queen's Road Central                                   Chiyoda-ku, Tokyo 100-6171
Hong Kong                                                Japan
Tel: (852) 2203 8888                                     Tel: (81) 3 5156 6701




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believed to be reliable. Deutsche Bank makes no representation as to the accuracy or completeness of such information.


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