Is CSCO Stock a Buy? TipRanks AI Analyst Says Yes

Business Insider

2 days ago

Cisco Systems stock (CSCO) has earned an Outperform rating from TipRanks' A.I. Stock Analysis tool.
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Cisco attracts strong interest from investors and Wall Street analysts. Notably, TipRanks' A.I. Analyst also gave Cisco a positive rating, signaling confidence in the stock's potential.
The tool assigns an Outperform rating on Cisco stock with a solid score of 78. Meanwhile, the A.I. analyst assigns a price target of $73 to CSCO stock, implying an upside of over 3% from the current levels.
For context, TipRanks' A.I. Stock Analysis provides automated, data-backed evaluations of stocks across key metrics, offering users a clear and concise view of a stock's potential.
CSCO's Financial Strength
Our AI analyst states that Cisco Systems demonstrates robust financial performance with strong profitability and cash flow, underpinning its stability in the communication equipment industry. It explains that the positive momentum aligns well with strategic growth in AI infrastructure and partnerships.
Indeed, Cisco is uniquely positioned to facilitate AI deployment with its networking and security portfolios, as well as Silicon One. In addition, product innovation is a strength with the company announcing noteworthy new offerings, including a Unified Cloud Management platform and Hybrid Mesh Firewall.
Overall, our AI egghead believes that Cisco is well-positioned for growth, though investors should remain mindful of external challenges such as tariffs and sector-specific headwinds.
However, as can be seen above it is not all good news for Cisco. There are macroeconomic risks and some uncertainty around the stock given its failure to disclose AI revenue numbers.
There are also some technical and valuation concerns – as seen below.
The technical indicators suggest caution due to potential overbought conditions. Valuation remains a concern due to a higher P/E ratio, yet the company's dividend yield adds some long-term investment appeal.
What Other Analysts Say
David Vogt of UBS raised the firm's price target on Cisco to $74 from $70 and kept a Neutral rating on the shares. He said that increasing campus and data center demand should drive a beat when it reports Q4 earnings this week.
JPMorgan analyst Samik Chatterjee raised the firm's price target on Cisco to $78 from $73 and kept an Overweight rating on the shares. The firm adjusted price targets in hardware and networking, saying it expects upside to second half of 2025 estimates from 'robust' cloud spending. However, underlying end market drivers for other customer verticals 'remain a watchpoint' as they exhibit more sensitivity to the economic environment.
Is CSCO a Good Stock to Buy Now?