Analyst Tal Liani from Bank of America Securities reiterated a Buy rating on Cisco Systems (CSCO – Research Report) and increased the price target to $76.00 from $72.00.
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Tal Liani has given his Buy rating due to a combination of factors including Cisco’s robust performance and strong demand environment. The company’s second-quarter results exceeded expectations with significant year-over-year growth in orders, particularly in the Service Provider and Cloud segments, driven by increased network utilization and AI infrastructure development. Cisco’s comprehensive portfolio, including Optical, Routing, and Silicon solutions, positions it well to capitalize on these demand trends.
Moreover, Cisco’s Cloud orders surged by over 100%, and Service Provider orders grew by more than 20%, indicating a promising outlook for the second half of the year. The company’s efforts in AI have also shown potential to surpass revenue targets. Although there are challenges such as tariff impacts on margins, Cisco’s margins remain solid, supported by productivity improvements and contributions from Splunk. Despite some slower growth in Security and Observability, the company expects these areas to improve, further justifying the Buy rating.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $73.00 price target.
Based on the recent corporate insider activity of 93 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.