From Barron's Hot Research:
Ticonderoga says building out connected communities could be big.
CISCO SYSTEMS (TICKER: CSCO) has been aggressively pushing to expand its addressable market opportunity by leveraging core routing, switching and advanced technologies businesses into new markets.
As such, the company is currently pursuing over 30 market adjacencies, including Smart+Connected Communities. Keep in mind, the current revenue generation from these 30-plus adjacencies remains small, but the longer-term opportunity (three to seven years out) is significant, in our view. If some of these large-market adjacencies pan out, we believe Cisco could approach $100 billion in revenue over the next decade....
...Cisco's Smart+Connected Community initiative remains in the early stages with no revenue recognized just yet. However, we believe that the long-term potential could be meaningful with a greater focus on the developing markets. Cisco estimates that 500 million people will be added to cities around the world over the next five years, while more than 100 new cities will be created with over one million residents by 2050 that will drive trillions of dollars in infrastructure investment.
With the network as the platform vision, Cisco is leveraging products, partnerships, solutions and services in areas such as Smart+Connected Real Estate, Smart+Connected Utilities, Smart+Connected Transportation, Smart+Connected Safety & Security, Smart+Connected Learning, Smart+Connected Health and Smart+Connected Government.
[We rate Cisco at Buy with a $32 12-month target price.]