CCi­iss­c­coo’’ss sst­tr­roon­ngg rreessu­ullttss ttoo bboooosstt 33 ttoopp sst­tooc­ckkss

Financial Mirror (Cyprus) - - FRONT PAGE -

Af­ter what has been a gru­elling cou­ple of years for one of the big­gest of the Sil­i­con Val­ley mega-tech stocks, it looks like Cisco Sys­tems Inc. (NAS­DAQ: CSCO) has turned things around in a dra­matic fash­ion. The com­pany re­ported solid earn­ings for the quar­ter and raised the div­i­dend paid to share­hold­ers. A new re­search re­port from RBC makes the case that three stocks in the tech­nol­ogy sup­ply chain may see some pos­i­tive ben­e­fit from the uptick at Cisco.

The three com­pa­nies that RBC sees ben­e­fit­ing the most from the Cisco re­sults and guid­ance are Am­phe­nol Corp. (NYSE: APH), Ce­lestica Inc. (NYSE: CLS) and Flex­tron­ics In­ter­na­tional Inc. (NAS­DAQ: FLEX).

About 4% of Am­phe­nol’s sales are to Cisco. It is one of the world’s largest de­sign­ers, man­u­fac­tur­ers and mar­keters of elec­tri­cal, elec­tronic and fi­bre op­tic con­nec­tors, in­ter­con­nect sys­tems, an­ten­nas, sen­sors and sen­sor-based prod­ucts and coax­ial and high-speed spe­cialty ca­ble.

With more than 10% of its to­tal sales to Cisco via routers, Ce­lestica pro­vides sup­ply chain so­lu­tions to equip­ment man­u­fac­tur­ers and ser­vice providers in the com­mu­ni­ca­tions, con­sumer, en­ter­prise com­put­ing, industrial, aerospace and de­fense, health care, so­lar, green tech­nol­ogy, semi­con­duc­tor equip­ment and other end mar­kets in the Amer­i­cas, Asia and Europe. Flex­tron­ics is rated Out­per­form at RBC and looks to be a win­ner from the Cisco gains as this lead­ing end-toend sup­ply chain so­lu­tions com­pany de­liv­ers de­sign, en­gi­neer­ing, man­u­fac­tur­ing and lo­gis­tics ser­vices to a range of in­dus­tries and end­mar­kets, in­clud­ing data net­work­ing, tele­com, en­ter­prise com­put­ing and stor­age, industrial, cap­i­tal equip­ment, ap­pli­ances, au­to­ma­tion, med­i­cal, au­to­mo­tive, aerospace and de­fense, en­ergy, mo­bile, com­put­ing and other elec­tronic prod­uct cat­e­gories.

The growth and turn­around at Cisco over the past year is an over­all pos­i­tive for the in­dus­try. In­vestors look­ing to reap some an­cil­lary benefits from the solid re­port may want to buy one of th­ese stocks RBC sees as ben­e­fit­ing.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.