Benzinga - by Priya Nigam, Benzinga Staff Writer.
Cisco Systems Inc (NASDAQ: CSCO) is among the many beneficiaries of the artificial intelligence (AI) trend.
The stock has underperformed the market over the last 12 months mainly due to weakness in Networking. However, the current estimates are “adequately low” and growth could accelerate from 2025 onwards, according to BofA Securities.
The Cisco Systems Analyst: Tal Liani upgraded the rating for Cisco Systems from Neutral to Buy, while raising the price target from $55 to $60.
The Cisco Systems Thesis: The company’s Networking weakness is likely to be offset by Splunk, Security, and AI, Liani said in the upgrade note.
Check out other analyst stock ratings.
The analyst termed these as the “three catalysts for growth acceleration” and elaborated on them:
- Splunk's acquisition offers “great growth synergies.”
- Cisco confirmed on March 18 that it completed the $28-billion acquisition of Splunk.
- Security growth is likely to accelerate, driven by firewall stabilization and the latest product launches.
- Cisco Systems has recorded market share gains in the Ethernet-based AI buildouts of hyperscalers.
- “While the next two quarters may remain pressured, we believe this weakness is fully reflected in Street expectations and management guidance is adequately conservative,” he added.
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Latest Ratings for CSCO
| Mar 2022 | Wells Fargo | Downgrades | Overweight | Equal-Weight |
| Feb 2022 | Cowen & Co. | Maintains | Outperform | |
| Feb 2022 | Raymond James | Maintains | Outperform |
View the Latest Analyst Ratings
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