On Nov 14, major Wall Street analysts update their ratings for $Cisco (CSCO.US)$, with price targets ranging from $60 to $72.
Morgan Stanley analyst Meta Marshall maintains with a buy rating, and adjusts the target price from $58 to $62.
J.P. Morgan analyst Samik Chatterjee maintains with a buy rating, and maintains the target price at $66.
BofA Securities analyst Tal Liani maintains with a buy rating, and adjusts the target price from $60 to $72.
Citi analyst Atif Malik maintains with a buy rating, and adjusts the target price from $62 to $64.
UBS analyst David Vogt maintains with a hold rating, and adjusts the target price from $55 to $62.
Furthermore, according to the comprehensive report, the opinions of $Cisco (CSCO.US)$'s main analysts recently are as follows:
Cisco's Q1 performance surpassed expectations, primarily due to Splunk's better-than-anticipated results. The significance of the U.S. Federal sector was noted as a point of interest. Overall, the sentiment from the quarter's results reinforced a positive outlook on the company.
Cisco's Q1 revenue contraction of 5.6% surpassed the predicted 6.1% decrease, while earnings per share surpassed the consensus. The company's FY25 revenue forecast saw an approximate $200M increase, largely reflecting this beat. Analysts note potential for growth acceleration in the latter half of the year, driven by robust order growth in Cloud/AI and Security, leading to adjustments in their financial models to account for these enhanced business trends.
Cisco's product orders have shown an increase of 9% excluding Splunk, a rise from the 6% observed in the previous quarter, indicating a positive turn in the company's business trajectory. Despite the timing of AI revenue recognition being somewhat uncertain, the expectation is that this revenue will begin being accounted for in the second half of 2025. Although the update on AI is encouraging, the notably high gross margins reported in the quarter, along with the forecasted 68%-69% for FY25, may require a cautious interpretation.
Post the fiscal Q1 report, the shares experienced a 3% decline in trading, as reactions were mixed to a modest earnings surpass and heightened expectations. This was in the context of better than anticipated artificial intelligence orders and encouraging signs in core networking orders, contrasted by a modestly enhanced fiscal 2025 growth forecast and a steady artificial intelligence guidance. The perceived 'mixed' results are seen to be eclipsed by the potential advantages to Cisco from a burgeoning artificial intelligence networking opportunity and more appealing valuation.
Cisco's recent fiscal Q1 sales results met expectations, and its earnings exceeded forecasts due to better-than-anticipated margins. Despite the expectation for greater order growth excluding certain acquisitions, it appears that the company's overall business has reached a stable state. Nonetheless, projections for growth by fiscal 2025 seem to be restrained, even when considering less challenging comparisons.
Here are the latest investment ratings and price targets for $Cisco (CSCO.US)$ from 7 analysts:
Note:
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