On Nov 15, major Wall Street analysts update their ratings for $Cisco (CSCO.US)$, with price targets ranging from $62 to $66.
Morgan Stanley analyst Meta Marshall maintains with a buy rating, and adjusts the target price from $58 to $62.
Jefferies analyst George Notter maintains with a buy rating, and maintains the target price at $66.
Evercore analyst Amit Daryanani maintains with a buy rating, and adjusts the target price from $60 to $65.
Rosenblatt Securities analyst Michael Genovese maintains with a hold rating, and adjusts the target price from $58 to $66.
Furthermore, according to the comprehensive report, the opinions of $Cisco (CSCO.US)$'s main analysts recently are as follows:
Cisco's Q1 performance modestly surpassed expectations, primarily driven by Splunk's notable outperformance. Analysts note that the U.S. Federal segment is an important aspect to monitor, but overall, they remain bolstered in their positive stance on the company's prospects.
Cisco experienced a Q1 revenue decline that was marginally better than market expectations, with a decrease of 5.6% compared to the anticipated 6.1%. Earnings per share also surpassed consensus estimates. Guidance for FY25 revenue was increased by roughly $200 million, largely reflecting the positive results. The potential for growth acceleration in the latter half of the year is supported by robust order growth in Cloud/AI and Security segments. Updated business models reflect these enhancing business trends.
Cisco's product orders have shown an increase of 9%, which indicates a positive turn in the company's business trajectory. This growth follows a 6% rise in the previous quarter. Despite the unpredictability surrounding the timing of AI revenue recognition, expectations are set for it to commence in the latter half of 2025 based on company commentary. Furthermore, while the company's recent record gross margins and the forecasted range of 68%-69% for FY25 are encouraging, they warrant a cautious approach.
The recent fiscal Q1 report has led analysts to focus on Cisco's modest outperformance and updated guidance, which was balanced by better-than-anticipated artificial intelligence orders and positive developments in core networking orders. Despite this, the limited adjustment to the fiscal 2025 growth forecast and consistent AI guidance has been a point of contention. Nonetheless, the potential advantages for Cisco arising from the growing opportunities in AI networking and the enhancement of its valuation are seen as significant factors.
Cisco's fiscal Q1 sales performance met expectations while an outperformance in margins led to surpassing earnings projections. It was anticipated that order growth, excluding certain acquisitions, would be higher. Nonetheless, there is a sense that the business has found a stable footing. Despite this, growth prospects up to fiscal 2025 appear restrained, even when considering the lower baseline for comparison.
Here are the latest investment ratings and price targets for $Cisco (CSCO.US)$ from 4 analysts:
Note:
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