Cisco’s (CSCO) stock jumped about 2% at the time of writing after catching a couple of upgrades from New Street and HSBC. Earlier this week, Cisco reported strong fourth-quarter results, announced plans to cut 7% of its workforce, and shared a new focus for its business.
As a result, New Street raised its rating to Buy with a $57 price target, saying that Cisco is bouncing back from recent challenges and is setting itself up for growth, especially as it shifts towards subscription-based and software-defined products.
HSBC also upgraded Cisco to Buy, raising its price target to $58 from $46. It expects Cisco’s earnings to grow at an annual rate of 11.6% over the next few years. HSBC believes Cisco’s networking revenue will see a strong rebound later in 2025 as demand picks up again, following a period of inventory reductions by customers. It also anticipates strong growth in Cisco’s security and collaboration segments, largely due to its recent Splunk acquisition.
Is CSCO a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on CSCO stock based on seven Buys, nine Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 7% decline in its share price over the past year, the average CSCO price target of $56.08 per share implies 13.36% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
