BofA Securities Upgrades Cisco (CSCO) to Buy 'on three growth drivers, low expectations, and valuation support'

BofA Securities analyst Tal Liani upgraded Cisco (NASDAQ: CSCO) from Neutral to Buy with a price target of $60.00 (from $55.00).

The analyst comments "We upgrade Cisco from Neutral to Buy and identify three catalysts for growth acceleration. We expect Networking to start normalizing and see renewed growth driven by Cisco’s share gains in Ethernet-based AI buildouts of hyperscalers. We expect Security growth to accelerate with the help of firewall stabilization and recent new product launches. Lastly, we see great growth synergies from Splunk’s acquisition. While the next two quarters may remain pressured, we believe this weakness is fully reflected in Street expectations and management guidance is adequately conservative. We revise our estimates to reflect Splunk’s consolidation and increase our PO from $55 to $60, now based on roughly 14.5x CY25E EV/FCF vs. 12x prior."

For an analyst ratings summary and ratings history on Cisco click here. For more ratings news on Cisco click here.

Shares of Cisco closed at $48.49 yesterday.

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