Cisco Stock Takes a Hit as Piper Sandler Cuts Price Target

Cisco Systems stock plummeted about 5% on Tuesday after Piper Sandler cut its price target for the networking equipment vendor to $125 from a previous estimate of $132.

The analysts cited lower price-to-earnings multiple expectations due to concerns that growth in the industry is peaking.

Cisco's stock has surged by 56% over the past year, reaching a record high in June, as revenue has increased significantly alongside the artificial intelligence boom.