According to TheFly, Pacific Crest believes the valuation on the shares is attractive. And at first glance, one might be inclined to agree with such a sentiment. In fact, considering the relatively tight 52-week range, I could easily imagine the stock rising after making what could theoretically turn out to be a bottom.
As always, you've got to see what the chart might be signaling. Over the last twelve months, it's readily apparent that Cisco has been on a downward trend. The chart looks like a falling knife.
If you adjust the chart to examine how well the stock has performed over longer periods of time, you'll notice that it has had its challenges. Overall, I can't call the idea an obvious technical buy.
Yet, I do find myself agreeing with Pacific Crest. Cisco might indeed be undervalued at these levels.
This stock is a must for any trader's watch list, no question about it. I like that the price of the equity is below $20. But there's still that falling-knife issue, so I consider buying a small stake and then using dollar-cost-averaging to build into the position. There is definite risk to this stock, so perform your own due diligence before making a move.
Disclosure: I don't own any company mentioned; positions can change without notice.