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Investing.com - Piper Sandler raised its price target on Cisco (NASDAQ:CSCO) to $86.00 from $70.00 on Thursday, while maintaining a Neutral rating on the networking equipment maker’s stock.
The price target increase follows what Piper Sandler described as "good quarters in a row" for Cisco, driven by webscale AI infrastructure buildout and an early campus refresh opportunity. The firm noted this campus refresh is being helped by end-of-life transitions for Cat4K-6K solutions and WiFi7 adoption.
Cisco raised its annual guidance by approximately 2%, which Piper Sandler characterized as "above-average" for this point in the year, while suggesting the outlook "still appears conservative from an operating perspective."
The research firm pointed to some weakness outside of Networking, particularly in Software & Security segments, where Splunk experienced a greater cloud mix than anticipated.
Despite the price target increase, Piper Sandler maintained its Neutral stance on Cisco shares, though it acknowledged the company’s execution and viewed the results as "a good signal of IT hardware strength this quarter."
In other recent news, Cisco has reported robust financial results, with its first-quarter fiscal 2026 earnings per share reaching $1.00, surpassing the company’s guidance range and Goldman Sachs’ estimate of $0.99. The strong performance was primarily attributed to a 15% year-over-year growth in the Networking segment. Following these results, Cisco raised its guidance, a move that was well-received by analysts. Rosenblatt Securities and Melius Research both increased their price targets for Cisco to $100, maintaining a Buy rating, with Rosenblatt highlighting strong AI demand and Melius noting exceptional execution in the networking segment. KeyBanc also raised its price target from $77 to $87, emphasizing the company’s stronger-than-expected revenue and operating income margins. Meanwhile, Goldman Sachs maintained a Neutral rating with a $75 price target, despite the strong momentum in AI. William Blair reiterated its rating, noting the positive outlook for artificial intelligence in the fiscal year. Overall, Cisco’s performance in the networking segment has been a focal point for analysts, offsetting some challenges in its security business.
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