Piper Sandler Lowers Cisco Price Target Amid Industry Growth Concerns

Cisco's stock price dropped by almost 5% on Tuesday after Piper Sandler lowered its price target for the company to $125 from $132.

The analysts at Piper Sandler pointed out that growth in the industry is peaking, which led them to lower their expectations for Cisco's price-to-earnings multiple.

Cisco had reached a record high in June and has seen its shares increase by 57% over the past 12 months due to a surge in revenue connected to the artificial intelligence boom.

The company reported fourth-quarter revenue of $17.25 billion, exceeding a $16.8 billion estimate from LSEG, but this did not seem to impress analysts who argued that sales growth would return to single digits.