Cisco Stock Drops as Piper Sandler Cuts Price Target Over Growth Concerns

Cisco's stock price dropped by nearly 5% on Tuesday following a cut to its price target by Piper Sandler, citing lower growth expectations in the networking industry.

The firm's analysts reduced their target from $132 to $125, driven by concerns that growth may be peaking. This comes despite Cisco's strong run, with shares up 57% over the past year, fueled by revenue growth tied to the AI boom.

In its latest report, Cisco posted record Q4 results, beating expectations with revenue of $17.25 billion and guiding for a nearly 15% increase in fiscal 2027. However, Piper Sandler's analysts remain cautious, calling Cisco's projection 'conservative' given strong demand across the market.