Cisco Systems (CSCO, Financial) earns upgrades as AI demand and networking growth fuel optimism.
Cisco's solid Q3 FY25 results and upbeat outlook have analysts boosting ratings and targets, led by Wells Fargo's move to Overweight with a $75 price goal (up from $72). The firm cites a “normalizing order growth recovery” and 60% recurring-subscription revenue, arguing AI traction across webscale, sovereign and enterprise segments justifies a 16–18× NTM P/E.
Evercore ISI echoed that view, reiterating Outperform and lifting its target to $72 after AI orders doubled to $600 million—hitting the $1 billion mark ahead of plan—and noting U.S. federal orders climbed double digits with total enterprise orders up 22%. Morgan Stanley and Bank of America likewise nudged up targets to $67 and $76, respectively, even as BofA flagged legacy security appliance headwinds.
Why it matters: Growing AI workloads and a campus-product refresh could unlock further multiple expansion if macro conditions hold.
Cisco Systems shares have shown steady growth over the past year, recently trading near $69. Analysts have set a 12-month average price target of $68.97, suggesting modest upside of around 6.5% from current levels. The highest target points to $80, while the GF Value—a proprietary valuation metric—sits lower at $55.64, indicating a divergence in outlook. The price trajectory shows renewed investor optimism after a brief dip in early 2025.
