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NEW YORK (AP) -- Shares of Cisco Systems rose after analysts praised its growth potential Wednesday, a day after the Internet router and switch maker held its annual industry meeting, where it said video products will fuel performance in the next few years. Shares rose 78 cents, or 2.8 percent, to $28.80. Jefferies & Co. analyst William Choi said Cisco's revenue from the information-technology sector should continue to grow in coming periods, and that video applications could be a $50 billion market opportunity by 2013. "We believe superior execution from Cisco will enable it to capitalize on opportunities in various areas including core routing and switching, collaboration, video, new technologies and emerging markets," Choi said in a client note. A new company business model, which now includes consumer and small-business units, may fuel acquisitions as Cisco hopes to improve its current 10 percent to 20 percent growth rate. Choi kept his "Buy" rating and $40 price target. Goldman Sachs analyst Brantley Thompson said the company is well-insulated against economic changes and that this factor should help performance if the economy turns sour. Thompson kept his "Buy" rating and $36 price target. "Bottom line, we believe that roughly two-thirds of sales are exposed to positive trends that are not tied to the economy," Thompson said in a client note. A growing international business and news from AT&T Inc. that it will need more routers and optical products bode well for Cisco, he said. Thompson did warn investors, though, that higher-than-expected operating costs and carrier delays on network upgrades could harm Cisco.
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