Boston, MA 07/14/2014 (wallstreetpr) – According to analysts at Cantor Fitzgerald, Cisco Systems, Inc. (NASDAQ:CSCO) may stabilize later in 2014. As such, the analysts raised their price target on the stock of the network equipment maker. They have the stock at $31 per share, up from $29.
The reason Cisco is being seen as an improving business is its robust growth in security. According to the company, security is its fastest growing portfolio.
The emergence of hyper-connected world is one reason data security has become so important that Internet users especially governments and enterprises are willing to pay a premium to protect their systems.
50 billion devices by 2020
It is estimated that more than 50 billion devices will be connected to the Internet by 2050 under the Internet of Things programs. However, increased connectivity in the world also leads to increased system vulnerability especially in an age where hacking has become a business more than a hobby that it used to be in the years past.
As such, with an increase in hacking threats, Cisco Systems, Inc. (NASDAQ:CSCO) sees immense business opportunity in providing world-class network security to those who need it.
According to Christopher Young, senior vice-president of securities at, Cisco Systems, Inc. (NASDAQ:CSCO, the Internet of Things is going to create numerous new types of attacks with a mindboggling scale, speed and scope. As such, Mr. Young noted that Cisco sees a huge opportunity in security especially in the virtualized ecosystem.
Security revenue
Cisco Systems, Inc. (NASDAQ:CSCO) generates $1.6 billion in annualized revenue from its security business, including the contribution of Sourcefire, a network business that it acquired in 2013. Revenue in the security business grew 10 percent in the last reporting. In terms of deals, the company noted 20 percent growth on a year-over-year basis.
Mr. Young observed that if Cisco Systems, Inc. (NASDAQ:CSCO)’s security business was a standalone company, it would be among the top-three security companies in the world. The company expects the security business to grow in the range of 10 – 15 percent in the long-term.
