Latest news with #StephenBersey
Yahoo
a day ago
- Business
- Yahoo
Why Cisco Systems Stock Slumped Today
Key Points The networking equipment company is hit with a post-earnings analyst recommendation downgrade. A onetime bull now feels the stock rates only a hold for investors. 10 stocks we like better than Cisco Systems › A recommendation downgrade from a global bank was the development pushing down Cisco Systems (NASDAQ: CSCO) stock on Friday. The company's shares absorbed the blow by sinking nearly 5% in price, comparing unfavorably to the relatively modest 0.3% slip of the bellwether S&P 500 index. Reduced to hold Well before market open that day, HSBC prognosticator Stephen Bersey lowered his recommendation on Cisco to hold from his previous buy. His price target on the shares is $69 apiece. Bersey's new take on the tech sector mainstay comes just after the company released its earnings for the fiscal fourth quarter of 2025. According to reports, the analyst expressed disappointment that Cisco didn't perform better during the quarter, given that its key networking segment had just gotten past several quarters of de-stocking. In his view, the company's fairly tepid full-year fiscal 2026 guidance indicates that the effects of de-stocking might already have been playing out. Bersey did wax optimistic about Cisco's take from components required for artificial intelligence (AI) functionalities, but to him this does not sufficiently compensate for weaknesses elsewhere in the business. High expectations Savvy Cisco investors are well aware that the company has been making a concentrated push into AI, which is likely the reason many of them traded out of the stock post-earnings. After all, it did manage to increase revenue and non-GAAP (adjusted) profitability -- the former by 8% year over year, landing at almost $14.7 billion, and the latter by 12% to $4 billion. Both figures were higher, if only a bit, than the consensus analyst estimates. However, any company wading knee-deep in the AI segment is expected to post numbers that are significantly on the upside, and Cisco failed to achieve this. We're not currently in a very forgiving market for tech stocks, and the recent developments with the company reflect this. Should you buy stock in Cisco Systems right now? Before you buy stock in Cisco Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Cisco Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 HSBC Holdings is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cisco Systems. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy. Why Cisco Systems Stock Slumped Today was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
2 days ago
- Business
- Globe and Mail
Why Cisco Systems Stock Slumped Today
Key Points The networking equipment company is hit with a post-earnings analyst recommendation downgrade. A onetime bull now feels the stock rates only a hold for investors. 10 stocks we like better than Cisco Systems › A recommendation downgrade from a global bank was the development pushing down Cisco Systems (NASDAQ: CSCO) stock on Friday. The company's shares absorbed the blow by sinking nearly 5% in price, comparing unfavorably to the relatively modest 0.3% slip of the bellwether S&P 500 index. Reduced to hold Well before market open that day, HSBC prognosticator Stephen Bersey lowered his recommendation on Cisco to hold from his previous buy. His price target on the shares is $69 apiece. Bersey's new take on the tech sector mainstay comes just after the company released its earnings for the fiscal fourth quarter of 2025. According to reports, the analyst expressed disappointment that Cisco didn't perform better during the quarter, given that its key networking segment had just gotten past several quarters of de-stocking. In his view, the company's fairly tepid full-year fiscal 2026 guidance indicates that the effects of de-stocking might already have been playing out. Bersey did wax optimistic about Cisco's take from components required for artificial intelligence (AI) functionalities, but to him this does not sufficiently compensate for weaknesses elsewhere in the business. High expectations Savvy Cisco investors are well aware that the company has been making a concentrated push into AI, which is likely the reason many of them traded out of the stock post-earnings. After all, it did manage to increase revenue and non-GAAP (adjusted) profitability -- the former by 8% year over year, landing at almost $14.7 billion, and the latter by 12% to $4 billion. Both figures were higher, if only a bit, than the consensus analyst estimates. However, any company wading knee-deep in the AI segment is expected to post numbers that are significantly on the upside, and Cisco failed to achieve this. We're not currently in a very forgiving market for tech stocks, and the recent developments with the company reflect this. Should you invest $1,000 in Cisco Systems right now? Before you buy stock in Cisco Systems, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cisco Systems wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025
CNBC
2 days ago
- Business
- CNBC
HSBC downgrades Cisco, says further gains will be harder to come by
HSBC says its time to move to the sidelines on Cisco Systems . The bank downgraded the network infrastructure stock to hold in a Thursday note and lowered its price target to $69 per share from $73. HSBC's forecast implies about 0.4% downside from Thursday's close. Analyst Stephen Bersey said Cisco's "restocking party seems over" after the company's lukewarm quarterly results. "We expected Cisco's networking segment to report improved growth vs a low base as its sector emerged from several quarters of destocking," Bersey said. "Cisco's networking revenue growth accelerated from -23.5% y-o-y in 1QFY25 to +12.2% in 4QFY25. Yet the company's FY26 revenue guidance (+5% y-o-y), along with slowing growth in remaining performance obligations plus backlog (+4.2% y-o-y in 4QFY25), suggest the restocking effect may be coming to an end sooner we had expected." CSCO YTD mountain Cisco stock in 2025. "Though the company reported more than USD2bn of AI infrastructure orders in FY25, strength seems to be getting offset by weakness elsewhere," the analyst said. Bersey added that the stock appears to be fairly valued. Indeed, shares have gained more than 17% in 2025 and 42.8% over the past year — outperforming the S & P 500. The stock fell slightly after the downgrade. Most analysts covering Cisco are on the sidelines. Of the 38 who cover it, 24 rate it as a hold, according to LSEG.
Business Insider
2 days ago
- Business
- Business Insider
Cisco downgraded to Hold from Buy at HSBC
HSBC analyst Stephen Bersey downgraded Cisco (CSCO) to Hold from Buy with a $69 price target Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
