CIBC World Keeps 'Buy' on Cisco

Analyst Steve Kamman says the maker of networking gear for the Internet topped his estimates

CIBC World keeps its buy rating on Cisco (CSCO )

Analyst Steve Kamman says Cisco's $0.14 fourth quarter earnings per share beat his estimates as well as the $0.12 consensus estimate, while fourth quarter revenues of $4.8.billion fell short of his $4.9 billion estimate. Kamman says Cisco showed strong cost controls and operational improvements, with lower inventory charges and an improved mix -- delivering an impressive 67.7% gross margin.

Kamman doesn't think this is sustainable long-term, but he says it does show the company's dominant position in its market. He remains cautious on the networking sector, but believes Cisco represents the safest play over the short term.

Kamman raised his $0.54 fiscal 2003 (July) earnings per share estimate to $0.60. He has a $14 target.

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