What happened Shares of Cisco Systems (NASDAQ: CSCO) jumped today after a JPMorgan analyst upgraded the company's stock to overweight from neutral. The tech stock popped 4.8% on the news and was up 4.4% as of 4:05 p.m. EST. So what JPMorgan analyst Samik Chatterjee also increased his price target for Cisco's stock to $55 from the previous $50. The upgrade is based on a few things that are working in Cisco's favor, including increased IT spending in the sector, Cisco's transition to subscription revenue, and the company's "inexpensive valuation." Image source: Getty Images. Chatterjee also believes that Cisco has potential upside for revenue and gross margin expansion in the upcoming quarter. And while Cisco's industry has had to manage a semiconductor shortage right now, as a result of higher demand for chips during the coronavirus pandemic, Chatterjee believes Cisco will be able to manage the shortage better than its peers. Now what Many investors bought up tech stocks when the pandemic began, but Cisco's stock wasn't invited to the party. With today's share price bump, Cisco's shares are up just 12.2% over the past 12 months. Cisco is still transitioning away from its previous focus on hardware sales to more long-tail revenue from subscription services. And today's optimistic investor note from Chatterjee is definitely welcome news for investors hoping that the tech stalwart can continue its transformation. 10 stocks we like better than Cisco SystemsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Cisco Systems wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source