BofA Sees Upside Opportunity in Cisco Stock Despite Weak Earnings Rebound

Cisco Systems reported record quarterly revenue and stronger-than-expected earnings in its fiscal fourth-quarter report. Despite this, the stock fell sharply after the announcement, closing at $112.90 on August 18.

However, analysts at Bank of America (BofA) see an opportunity in this disconnect, reiterating a 'Buy' rating and a price target of $150 on Cisco.

The analyst, Tal Liani, argues that growing demand for networking services and AI infrastructure could lead to further upside for the company. The target implies roughly 33% upside from Cisco's closing price on August 18.