Goldman Sachs Suggests Buying 1x2 Call Spreads on Cisco (CSCO)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy 1x2 call spreads on Cisco Systems CSCO ahead of earnings. Goldman Sachs Telecom Equipment analyst, Simona Jankowski, sees CSCO reporting an inline quarter and guiding next quarter better than Street ($0.41 vs $0.39). While she rates shares as a Neutral, she notes that with Street estimates below CSCO guidance, a “not as bad as feared” quarter is likely a positive catalyst for the stock. The analysts recommend buying the February $22/23 1x2 call spread for $0.12. Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP)-based networking and other products related to the communications and information technology industry and provide services associated with these products and their use.