Cisco Stock Price Prediction: New Sanctions Against Huawei Are Tailwinds for Cisco

The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

We should increase our position on Cisco while its stock still trades at below 20x Forward P/E valuation.
The new sanctions against Huawei are obvious tailwinds that can boost Cisco's top line growth.
Cisco's 5-year revenue growth CAGR is 0.77%. The U.S. Government's punitive action against Huawei is therefore a blessing for Cisco.
Huawei faces a difficult future. It won’t be able to get software updates and hardware components that are based on American companies’ design.
CSCO is radiating buy signals from its EMA trends patterns. CSCO’s 5-day EMA of $45.15 is above its 13-day EMA of 13 day EMA ($44.30) and 20-day EMA ($43.72).

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The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

The anti-Huawei position of the CIA and the United States is a tailwind for Cisco.
The elimination of low-pricing specialist Huawei means Cisco can sell more of its network routers & switches.
Cisco and Huawei are also fierce global rivals in server computers. The United States and its allies can also disrupt Huawei’s server sales.
Cisco’s Artificial Intelligence and Deep Learning business can also benefit if Huawei doesn’t win any non-China customers.
I Know First has a slightly bullish algorithmic 12-month forecast for CSCO. Monthly technical indicators and moving averages trends also rate CSCO as a buy.

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The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

Cisco and Arista has settled their court battle last year. Arista is now free to keep on taking away networking/data center customers away from Cisco.
Compared to Cisco, Arista’s revenue performance over the last five years showed it is the better investment for growth-minded investors.
ANET has notably higher valuation ratios than CSCO because it is perceived as the firm with the better growth potential. Cisco is too big and too old, it cannot grow fast anymore.
Arista’s management and engineers are former Cisco employees. Arista therefore has the technology and contact lists to disrupt Cisco’s small and large enterprise businesses.
I Know First has bullish algorithmic forecasts for ANET.