Cisco (CSCO) PT Raised to $71 at Citi
Citi analyst Atif Malik raised the price target on Cisco (NASDAQ: CSCO) to $71.00 (from $68.00) while maintaining a Buy rating.
The analyst comments "Shares of CSCO rallied MSDs post a modest beat and raise Q as strength in core networking drove a raised FY25 growth outlook and mgmt lowered GM expectations to reflect the full impact of tariffs. Importantly, the GM outlook assumes no mitigation efforts, a highly unlikely outcome in our view. With the overhang from excess inventory worked through, DD growth in campus and data center switching orders bodes well for 2H networking sales. Other key positives include $750m YTD in Cloud AI orders that are expected to be >$1B in FY25 and are converting to sales, as well as the start of enterprise AI orders. Our FY25/FY26 EPS estimates increase by 1% each and we raise our TP to $71 as a growing AI momentum merits a higher 17.8x multiple, in our view. Maintain Buy."