UBS Sticks by 'Buy' on Cisco Amid Booming AI Demand

UBS has reaffirmed its 'Buy' rating on Cisco Systems Inc. (CSCO) with a price target of $132.00, citing accelerated demand for AI infrastructure. The stock currently trades at $119.55, up 73% over the past year and 52.6% year-to-date.

The firm's analysis suggests that shares may be overvalued compared to its Fair Value estimate. However, industry checks indicate strong networking revenue and product orders in the quarter, supporting UBS' expectations.

UBS forecasts a 26% year-over-year growth in networking revenue, representing an acceleration from 25% last quarter despite a tougher comparison. The firm also expects a modest deceleration in product order growth to 29% in the July quarter from 35% last quarter.