CHICAGO, IL., October 19, 2020 – Premier issuer-sponsored equity research firm Water Tower Research LLC officially launched coverage of the IT Hardware & Communications Equipment sectors today, including publishing Initiation of Coverage briefs on Cisco Systems (NASDAQ: CSCO), Extreme Networks (NASDAQ: EXTR), and Infinera (NASDAQ: INFN). These reports focus on each company’s key drivers, milestones, obstacles and opportunities.
“Communications is experiencing significant upward demand drivers related to pandemic lockdowns resulting in a significant increase in remote access from consumers and industry alike. However, the incremental demand is being partially balanced by the slower overall demand for goods and services that is squeezing enterprise budgets,” said John Roy, Ph.D., Managing Director and head of IT Hardware & Communications Equipment equity research at Water Tower Research. “Investors will need to understand the specific potential of each company’s end-markets, otherwise they could invest in companies that miss revenue expectations.”
Dr. Roy continued, “Cisco, as the networking leader, could take market share in a post-COVID world, but its key Infrastructure Platforms segment (over 50% of sales) has been declining over the last few years and will need to be offset by growth in the Applications (11% of sales) and Security (6% of sales) segments. Extreme Networks’ cloud-driven networking could deliver a significant advantage. Extreme Network’s next move to a universal product platform could drive gross margin expansion. Infinera’s ICE6’s optical technology could lead to an 800G competitive advantage, and the rise of Huawei’s security concerns could reduce Infinera’s competition signicantly.”
About Water Tower Research
At Water Tower Research, our mission is to bridge the information gap between companies and investors, while reaching a much broader and diverse group of investors, in comparison to the traditional and challenged equity research model. We provide “Research for the Other 99%®”, on a platform powered by Wall Street veterans that are knowledgeable and experienced to help investors understand key strategies, industries, technologies, and drivers impacting the companies we cover as well as their peers. Water Tower Research uses a broad portfolio of tools to communicate with investors, including a traditional research platform, in addition to innovative and proactive products and digital strategies, providing valuable and consistent information flow. Please see the disclosures HERE.