Cisco upgraded to Buy at Rosenblatt as AI becomes larger driver

As previously reported, Rosenblatt analyst Mike Genovese upgraded Cisco (CSCO) to Buy from Neutral with a price target of $80, up from $66. In Q2, Cisco increased revenues 9% year-over-year to $14.0B and produced EPS of 94c, exceeding consensus on each, notes the analyst, who argues that Cisco deserves multiple expansion due to growth in software subscriptions and as AI becomes a larger driver of total business. AI infrastructure orders with Web Scalers were more than $350M in Q2, bringing the year-to-date total to $700M and putting Cisco on track to exceed $1B of AI infrastructure orders in FY25, the analyst added.