BofA Securities has reaffirmed its Buy rating and $150.00 price target for Cisco Systems following the company’s latest quarterly results. Cisco reported a 24% year-over-year revenue growth in its first-quarter fiscal 2027, surpassing Wall Street’s expectations of 22%. The stock has climbed 8.7% over the past week, currently trading at $102.01 with a market capitalization of $401 billion. The company also guided second-quarter growth at 18%, higher than the Street’s estimate of 16%, with second-half growth implicitly guided at 17%.
The company is capitalizing on a networking super-cycle driven by five key trends: AI wins with hyperscalers, campus refresh and modernization, security-driven upgrades for the AI era, sovereign infrastructure, and hybrid data centers for enterprises. Product order growth reached 21% year-over-year, up from 13% a year ago, with strong demand across all important product categories. BofA Securities expects this growth to continue into the next few quarters and has fine-tuned its estimates to reflect the underlying demand environment.
According to InvestingPro analysis, Cisco currently trades above its Fair Value, placing it on the platform’s Most Overvalued list. Investors seeking deeper insights can access Cisco’s comprehensive Pro Research Report, available for this and 1,400+ other US equities on InvestingPro. In other recent news, Cisco Systems reported impressive fiscal first-quarter results, with non-GAAP earnings of $1.40 per share on revenue of $18.5 billion. These figures surpassed Wall Street’s estimates of $1.32 per share and $18.11 billion in revenue.
The company described the quarter as a record, highlighting its fastest revenue growth in over 15 years. BofA Securities maintained a Buy rating on Cisco, keeping its price target at $150 due to strong demand driven by AI advancements. They noted that Cisco’s second-quarter revenue growth guidance of 18% exceeded the Street’s estimate of 16%. Meanwhile, Wells Fargo lowered its price target for Cisco from $150 to $130, citing broader market compression, although they maintained an Overweight rating. Wells Fargo acknowledged Cisco’s robust first-quarter performance and optimistic guidance for the second quarter and the full fiscal year 2027.