Cisco Systems (CSCO) is a leading provider of IP-based networking and other products. The company’s second-quarter results beat the Zacks Consensus on both the top and bottom lines. Orders continued to strengthen in the last quarter, indicating continued business momentum.

New products, growth initiatives, improving operating performance, solid financials and a sound restructuring policy are positives. Of course, competition remains something to look out for, since the company has been losing some market share. Additionally, the complicated decision-making process and integration risks remain.

However, we believe the positives outweigh the negatives at this point. Consequently, we are upgrading CSCO shares to Outperform.Zacks Investment Research