Cisco Upgraded on AI-Fueled Order Surge

Moz Farooque

Thu, May 15, 2025, 1:29 PM 1 min read

Cisco Systems (NASDAQ:CSCO) earns upgrades arsenic AI demand and networking maturation substance optimism.

Cisco's coagulated Q3 FY25 results and upbeat outlook person analysts boosting ratings and targets, led by Wells Fargo's determination to Overweight with a $75 terms extremity (up from $72). The steadfast cites a normalizing bid maturation betterment and 60% recurring-subscription revenue, arguing AI traction crossed webscale, sovereign and endeavor segments justifies a 1618 NTM P/E.

• Warning! GuruFocus has detected 11 Warning Signs with CSCO.

Evercore ISI echoed that view, reiterating Outperform and lifting its people to $72 aft AI orders doubled to $600 millionhitting the $1 cardinal people up of planand noting U.S. national orders climbed treble digits with full endeavor orders up 22%. Morgan Stanley and Bank of America likewise nudged up targets to $67 and $76, respectively, adjacent arsenic BofA flagged bequest information appliance headwinds.

Why it matters: Growing AI workloads and a campus-product refresh could unlock further aggregate enlargement if macro conditions hold.

Cisco Systems shares person shown dependable maturation implicit the past year, precocious trading adjacent $69. Analysts person acceptable a 12-month mean terms people of $68.97, suggesting humble upside of astir 6.5% from existent levels. The highest people points to $80, portion the GF Valuea proprietary valuation metricsits little astatine $55.64, indicating a divergence successful outlook. The terms trajectory shows renewed capitalist optimism aft a little dip successful aboriginal 2025.

This nonfiction archetypal appeared connected GuruFocus.