Cisco will thrive in Trump-led America, says Credit Suisse. Tax cuts will enable Cisco to go for larger share buybacks and strike transformative acquisitions. If only markets have predictable swings…!
Analysts and market watchers are not to be taken seriously as they are usually marketing machines with an axe to grind.
But I may have to agree with this one, for once. Cisco is one of the few companies with very deep pockets.
As this CNBC report points out, Cisco has US$ 62 billion in cash offshore that it can unleash under tax repatriation reform. Sounds like a fair assessment!
During my days at Cisco, when its cash reserves were around $40 billion, I was always sceptical about buybacks as its strong quarterly results were consistently followed by weak guidance, which inevitably will drag its share price down.
G Joslin Vethakumar