Piper Sandler Slashes Cisco Price Target Amid Sector Growth Concerns

Cisco's stock price slid by almost 5% on Tuesday after Piper Sandler lowered its price target to $125 from $132, citing concerns that sector growth may be slowing down. The company's latest quarter saw revenue exceed expectations at $17.25 billion, but analysts were skeptical of Cisco's ambitious FY2027 outlook calling for nearly 15% revenue growth.

Piper Sandler's team argued that a lower price-to-earnings multiple was justified given fears of industry growth topping out. Despite this, the company still labeled its projection 'conservative' relative to strong market demand.

Cisco highlighted hyperscalers as a key factor in driving revenue, estimating $4 billion in revenue from these customers in fiscal 2026 and guiding to $7.5 billion in fiscal 2027. Since reaching a record in June, the stock has gained 57% over the past 12 months.