Cisco Systems Upgraded by Wall Street Zen Amid AI Infrastructure Boom
Cisco Systems (NASDAQ:CSCO) has received an upgrade from Wall Street Zen to 'buy' from 'hold'. This is just one of several upgrades for Cisco in recent days, with KeyCorp upping its price target on shares from $130.00 to $135.00 and giving the company an 'overweight' rating.
The network equipment provider reported strong earnings last week, beating analysts' consensus estimates with a profit of $1.22 per share for the quarter. Revenue was also up 17.6% year-over-year at $17.25 billion.
Despite this positive news, Cisco's shares have decreased due to high expectations after a substantial rally. Investors are questioning whether the company's AI momentum can remain strong beyond the current infrastructure buildout and whether its premium valuation is justified.