NEW YORK, March 8 (Reuters) - Shares in Cisco Systems Inc (CSCO.O) rose almost 4 percent on Monday as analysts forecast strong growth from the maker of network equipment and investors bet on its upcoming products.
Cisco shares rose 92 cents to close at $26.13 ahead of a Tuesday announcement which Cisco promised would “forever change the Internet.”
The announcement is expected to be about a new technology for communications service providers to offer advanced high-speed Internet connections, a source familiar with the matter told Reuters late last month. [nN24107734]
Piper Jaffray analyst Troy Jensen was skeptical about how soon a new product announcement would translate to revenue for Cisco, but he said that demand for the company’s existing products was stronger than expected in the current quarter.
Jensen said operators were ordering their network equipment from Cisco further in advance than before as they were worried about supply constraints due to strong demand.
“Not only is it good for the quarter because they’re tracking ahead of expectations, but they also have good visibility for the next quarter,” Jensen said.
Also on Monday, JP Morgan assumed coverage of Cisco and gave an overweight rating on the stock and a price target of $28.
Avian Securities analyst Catherine Trebnick said the company would likely announce upgrades to existing products and and plans for products from recent acquisitions.
“I believe they’re going to have a vision that wraps recent acquisitions around a core router upgrade and Internet video and telepresence,” Trebnick said.
(Reporting by Sinead Carew; Editing by Richard Chang)
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