Cisco price target raised to $62 from $55 at UBS

UBS raised the firm’s price target on Cisco (CSCO) to $62 from $55 and keeps a Neutral rating on the shares. Cisco’s product orders were up 9% ex-Splunk, up 6% last quarter, providing further evidence that Cisco’s business has inflected, the analyst tells investors in a research note. While timing around AI revenue recognition is somewhat beyond the company’s control, commentary on the call suggests AI revenue should start to be recognized in second half of 2025, the firm says. While the AI commentary is a positive, the record gross margins in the quarter and outlook for 68%-69% for FY25 should be slightly discounted, the firm adds.