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Investing.com - Rosenblatt Securities raised its price target on Cisco (NASDAQ:CSCO) stock to $100.00 from $87.00 on Thursday, while maintaining a Buy rating on the networking equipment maker. The new target represents a 35% upside from Cisco’s current price of $73.96, with the stock already trading near its 52-week high of $74.84.
The price target increase follows Cisco’s quarterly earnings beat and raised guidance, driven by strong demand from hyperscale customers, service providers, and enterprises investing in artificial intelligence infrastructure. The company reported 8.91% revenue growth in the last twelve months, reaching $57.7 billion, with a healthy gross profit margin of 64.85%.
Rosenblatt highlighted Cisco’s fiscal year 2026 revenue growth guidance of approximately 7% as a key factor making the stock attractive at current levels. InvestingPro analysis shows Cisco has achieved a perfect Piotroski Score of 9, indicating exceptional financial strength, though it’s currently trading slightly above its calculated Fair Value.
The firm noted that Cisco executed better than industry peers in several areas, including federal business performance, managing gross margin impacts from higher component costs, and securing components to fulfill customer demand. As a prominent player in the Communications Equipment industry with a $291.46 billion market cap, Cisco has maintained dividend payments for 15 consecutive years, currently yielding 2.22%.
The new $100 price target is based on a multiple of 25 times Cisco’s projected fiscal year 2027 earnings per share, according to Rosenblatt’s analysis. Cisco currently trades at a P/E ratio of 28.82, which InvestingPro identifies as high relative to near-term earnings growth. Discover 10+ more exclusive ProTips and access Cisco’s comprehensive Pro Research Report, part of the in-depth analysis available for 1,400+ top US stocks.
In other recent news, Cisco has reported its first-quarter fiscal 2026 earnings, with earnings per share reaching $1.00, surpassing both Goldman Sachs’ estimate of $0.99 and the company’s guidance range of $0.97-$0.99. This performance was largely attributed to a 15% year-over-year growth in its Networking segment. Additionally, KeyBanc highlighted Cisco’s stronger-than-expected revenue, which exceeded consensus by 0.8%, with operating income margins also surpassing expectations. This positive outcome led KeyBanc to raise its price target for Cisco to $87 from $77, maintaining an Overweight rating.
Melius Research also increased its price target for Cisco to $100 from $84, driven by strong execution in the networking segment, despite a 2% year-over-year decline in the security segment. Morgan Stanley joined in by raising its price target to $82 from $77, citing better-than-expected performance in two of Cisco’s three key growth drivers, particularly in artificial intelligence. Meanwhile, William Blair reiterated its rating on Cisco, following the company’s guidance raise and positive outlook on artificial intelligence for the fiscal year. Goldman Sachs maintained a Neutral rating with a $75 price target, acknowledging the strong AI momentum.
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