Buy Cisco as it trades at an 'undemanding' valuation, says Deutsche Bank
Cisco Systems' targets are looking more realistic while the stock trades at an "undemanding" valuation, according to Deutsche Bank. The firm upgraded the digital communications stock to buy from hold in a Sunday note, and increased its price target to $73 per share from $65, suggesting shares will rise 14% from Friday's $64.09 close. CSCO YTD mountain Cisco Systems stock in 2025. Analyst Matt Niknam said the company has "improved visibility towards durable mid-single-digit growth in upcoming years, with tailwinds from AI." This outlook underpinned the stock upgrade, but he also pointed to "more favorable near-term competitive dynamics in networking and improved scale in security." Further, Cisco stock trades at a roughly 25% discount to the broader S & P 500, which represents an attractive entry point for investors, he said. "Taken together, we see increased line of sight towards sustainable high-single bottom-line growth, which we believe should help compress the discount to the market multiple," the analyst added. Shares have advanced about 11% so far in 2025.
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