) to overweight from equal weight, citing factors such as stock price valuation and the company's cash flow.
Analyst Jiong Shao said the computer networking gear maker's shares have traded off in value by about 15% since the July quarter, but the company's fundamental business operations haven't had any material change. Shao believes the shares' current multiple of 16 times calendar year 2006 earnings, with strong cash flow metrics, make the stock a favorable investment. He noted possible catalysts that could boost the stock price in the coming months, including solid October quarter results and an analyst conference on Dec. 6. Shao kept his price target at $21, his fiscal year 2006 (ending July) earnings per share estimate at $1.02, and his fiscal year 2007 earnings per share estimate at $1.19.