Cisco Price Targets Soar as Wall Street Sees AI-Driven Growth Prospects

Cisco Systems Inc., or CSCO, has attracted increased optimism from Wall Street after its strong fiscal fourth-quarter (Q4) performance and an upbeat outlook for the year ahead. Three firms have raised their price targets for CSCO stock, citing resilient demand, artificial intelligence-related growth, and improving expectations for the company's broader networking business.

Truist raised Cisco's price target to $140 from its previous estimate of $125, while maintaining a 'Buy' recommendation. The firm believes Cisco's latest results and fiscal 2027 outlook leave room for a further upside of 23% to the stock's last closing price.

Rosenblatt took an even more aggressive stance, lifting its price target on CSCO to $165 from $150, implying a 45% upside to the stock's last closing price. The firm characterized Cisco's quarterly performance as broadly healthy across its product portfolio, customer markets and geographic regions.

UBS also raised its price target to $138 from $132 and retained a 'Buy' rating, believing that Cisco's latest guidance for AI-related revenue may prove cautious. The company's order activity and accumulated business commitments could provide additional support as fiscal 2027 progresses, while productivity gains may help sustain operating margins at around 35%.

Jim Cramer, host of CNBC's 'Mad Money', argued that investors should look for companies that 'underpromise and overdeliver'. He cited Cisco as a prime example, noting that CEO Chuck Robbins usually gives cautious forecasts, especially at the start of Cisco's financial year.