Cisco Systems Upgraded to Strong-Buy by Freedom Capital

Cisco Systems (NASDAQ:CSCO) has seen its stock rating upgraded by research analysts at Freedom Capital from 'hold' to 'strong-buy', according to a report issued on Sunday. This upgrade comes as several other analysts have raised their price targets for the company, with Citigroup increasing its target to $112.00 and Morgan Stanley raising its target to $135.00.

The move reflects growing confidence in Cisco's ability to execute its strategy and capitalize on opportunities in AI infrastructure. The company reported record quarterly revenue of approximately $17.3 billion, up 18% year over year, with earnings per share exceeding the consensus estimate. Management also issued an optimistic fiscal 2027 EPS outlook of $5.05 to $5.11.

However, not all analysts are as bullish on Cisco. HSBC cut the company's rating to 'hold', citing concerns about valuation and the durability of the recent growth acceleration. Additionally, several insiders have sold shares in the past quarter, although these sales were conducted under pre-arranged Rule 10b5-1 plans.