Technology and networking company CSCO has corrected pretty much in line with the NASDAQ and the company remains the dominant provider of the enterprise networking hardware that forms the backbone of the internet. Compared to its peers the stocks actually performed admirably over the last 12-months arguably making it a defensive tech play, a theme we like through 2022/23. Like all businesses there are always challenges and for CSCO there are 3 obvious areas to be aware of:
- Supply chain issues which we believe will ultimately prove transitory, competition from the likes of Huawei and Hewlett-Packard are likely to increase and they have experienced sluggish growth from their collaboration businesses.
Overall while these challenges are very real, we believe CSCO is well-positioned for a post COVID re-opening economic recovery.
MM likes CSCO into current weakness between $US51.50 and $US54.50
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