Cisco may jump when tech budgets return -Barron's

NEW YORK, April 12 (Reuters) - Shares of Cisco Systems Inc (CSCO.O: Quote, Profile, Research), which went from being a favorite growth stock to being better known a value stock, could rise by more than 50 percent, according to the April 13 edition of Barron's.

Shares of Cisco, which closed on Thursday at $17.82 on the Nasdaq, could trade up to $26 or $27, Barron's said.

Cisco had $4 billion in cash, $25 billion in investments and $6 billion in debt at the end of the January quarter, Barron's said.

Brian Nelson, who helps run the $3.8 billion Charter Fund on behalf of Invesco Aim, said he sees significant upside for Cisco shares as information technology budgets rebound, Barron's said. The fund in December upped its holding of Cisco by more than 50 percent, Barron's said, citing a regulatory filing.

Still, Wall Street is concerned about Cisco's purchase of Pure Digital and by its announcement last month that the company will start selling servicers this year to compete with Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) and International Business Machines Corp (IBM.N: Quote, Profile, Research), which resell Cisco routers and switches, Barron's said. (Reporting by Ilaina Jonas; Editing by Leslie Adler)