Cisco (NASDAQ: CSCO) shares continue to trade above $50 support, and with a $218B market capitalization, this stock is still reasonably valued. Cisco is a company with good fundamentals, and Wolfe Research increased its price target on Cisco to $63 last week.

Cisco is a healthy and stable technology company that could generate more profitability due to having a more software-oriented management team. Goldman Sachs recently announced that Cisco shares are still undervalued relative to the market and raised the price target from $50 to $59.

It is important to mention that Wolfe Research and JPMorgan also positively view this company. Wolfe Research increased its price target on Cisco to $63 last week as the rise of software and “strong IT spending should contribute to multiple expansion.

Cisco reported Q2 2021 results in February; total revenue has decreased by -0.1% Y/Y to $12B while Q2 GAAP EPS was $0.60 (beats by $0.02). Total revenue has decreased below estimates (beats by $100M), and it is important to say that Cisco increased a quarterly dividend by 3% to $0.37 per common share.

“We are seeing encouraging signs of strength across our business, showing how our technology will be a powerful engine for recovery and growth. For fiscal Q3, we expect revenue growth of 3.5%-5.5% and EPS of $0.80-$0.82 (in line with consensus for $0.81),” said  CEO/Chairman Chuck Robbins.

Cisco has raised its dividend for the last ten years, and the stock’s 2.8% dividend payout still remains attractive. Cisco continues to move in the right direction, and in this ongoing bull market, shares of this company have upside potential.

Cisco shares have advanced more than 17% since the beginning of 2021, and at the current stock price, this company is reasonably valued.

The important support levels are $50 and $45, $55 and $60, represent the current resistance levels. If the price jumps above $55 resistance, it would be a signal to buy Cisco shares, and the next target could be around $60.

Rising above $60 supports the continuation of the bullish trend for Cisco shares, but if the price falls below $45, it would be a strong “sell” signal.

Cisco is a healthy and stable technology company that could generate more profitability due to having a more software-oriented management team. Cisco declared a $0.33/quarterly share dividend, representing a 3% increase from the prior dividend. Wolfe Research increased its price target on Cisco to $63 last week, and in this ongoing bull market, shares of this company have upside potential.

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