Cisco Gaining Traction In Storage Networking

"Banc of America Securities said that after a "slow start," Cisco Systems is "gaining traction in storage networking." Banc of America said, "With expectations for great market growth, share gains, and more than 60% gross margins, we are positive on Cisco's position." The research firm said, "Business continuity and disaster planning, storage consolidation, data usage, and government regulations are driving robust demand for storage capacity, and Cisco is gaining share." Banc of America said Cisco is gaining share with traction at major original equipment manufacturers, particularly EMC (nyse: EMC). The firm, which rates Cisco at "buy," said its 12-month price target of $24 assumes the shares trade at 21-times the calendar 2006 earnings-per-share estimate of $1.13. "

[Forbes.com]