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Investing.com - BofA Securities raised its price target on Cisco (NASDAQ:CSCO) to $95 from $85 while maintaining a Buy rating, citing strong orders for AI networking and campus refresh demand. The new target represents nearly 30% upside from Cisco’s current price of $73.96, which is trading just 1% below its 52-week high of $74.84. According to InvestingPro data, Cisco appears overvalued compared to its Fair Value estimate.
The firm highlighted Cisco’s new $3 billion fiscal year 2026 AI revenue target, up from $1 billion recorded in 2025, demonstrating significant growth in the company’s AI networking business. This ambitious AI growth target comes as Cisco, with its $291.5B market capitalization, posted 5.3% revenue growth in the last twelve months.
Campus refresh represents another growth driver, with BofA noting that $10 billion of old Campus products will reach end-of-service in fiscal year 2026, creating replacement opportunities.
Based on these factors, Cisco increased its 2026 revenue growth guidance to 7%, exceeding the Street’s expectation of 5.3%, though BofA mentioned that the security segment disappointed with a 2% year-over-year decline despite platform launches and firewall refreshes.
BofA’s new price target reflects a multiple of 21x 2027 estimated EV/FCF, up from 19x previously, with the firm stating that Cisco is "positioned to benefit from the Campus refresh and AI cycle, especially as AI expands to Enterprise environments."
In other recent news, Cisco Systems Inc. reported impressive fiscal first-quarter results for 2026. The company achieved earnings per share of $1, surpassing analysts’ expectations of $0.98, resulting in a 2.04% earnings surprise. Cisco’s revenue for the quarter reached $14.9 billion, exceeding the anticipated $14.77 billion. These figures indicate a robust performance for the company, with earnings and revenue both beating projections. Additionally, several analyst firms have taken note of these results, with some suggesting potential revisions to their evaluations of Cisco. The company’s strong financial performance has garnered attention from investors and analysts alike. These developments reflect Cisco’s ability to outperform market forecasts, providing valuable insights for stakeholders.
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