Cisco: Buy Rating Backed by EMEA Data Center Growth, AI-Driven Demand, and Expanding Software & Security Agreements

Tal Liani, an analyst from Bank of America Securities, maintained the Buy rating on Cisco Systems. The associated price target remains the same with $95.00.

Tal Liani has given his Buy rating due to a combination of factors, including Cisco’s constructive management tone and solid positioning in visibility, security, and connectivity across EMEA. He highlights management’s disciplined approach to recent price increases, noting mechanisms that limit order pull‑forward and suggesting supply constraints, while present in memory, are far less severe than during the COVID period.

Liani also points to robust data center expansion in EMEA ahead of anticipated AI workloads and Cisco’s selective strategy in Neocloud environments, targeting higher‑value, enterprise‑grade deployments rather than low‑margin volume. In addition, he sees growing traction in broader enterprise agreements that bundle software and services, which support observability and security adoption even as legacy security products and cloud revenue timing temporarily mask the underlying momentum.

Based on the recent corporate insider activity of 119 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CSCO in relation to earlier this year.