Cisco ‘setting an achievable FY25 bar,’ says Morgan Stanley

Morgan Stanley says Cisco’s slight fiscal Q3 beat against a backdrop of investor caution given calendar Q1 prints from the networking ecosystem was “a positive, particularly with orders organically coming in flat.” The firm views FY25 EPS guidance as “achievable on overly conservative Splunk integration” expectations and sees the analyst day on June 4 as the next catalyst for stock given that it would expect “some improved earnings growth outlook against a conservative FY25 starting point.” Morgan Stanley maintains an Overweight rating and $58 price target on Cisco shares.