Cisco Wins Over Wall Street as AI Demand Fuels Networking Supercycle
Cisco Systems Inc. (CSCO) has won over Wall Street analysts after delivering strong results in its fiscal fourth-quarter performance.
The company's networking hardware and software maker saw three firms lift their price targets, citing resilient demand, artificial intelligence-related growth, and improving expectations for the company's broader networking business.
Matt Niknam of Truist raised his price target on Cisco to $140 from $125 while maintaining a 'Buy' recommendation. He believes Cisco's latest guidance for AI-related revenue may prove cautious, but order activity and accumulated business commitments could provide the company with additional support as fiscal 2027 progresses.
Rosenblatt took the most 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.
Jim Cramer urged investors to look for companies that 'underpromise and overdeliver', arguing that conservative guidance can create buying opportunities when businesses later exceed expectations. He cited Cisco as a prime example.