Citi ups Cisco target, opens ‘positive catalyst watch’ into earnings

Citi raised the firm’s price target on Cisco (CSCO) to $68 from $64 and keeps a Buy rating on the shares. The analyst also opened a “30-day positive catalyst watch” on the shares heading into earnings. Citi believes improving trends in the $20B campus switch market will contribute to “solid” January quarter results and potential upside to Cisco’s fiscal 2025 sales growth. The campus switching market is expected to return to growth in Q4, as the market normalizes after a period of inventory digestion, the analyst tells investors in a research note. Citi thinks Cisco’s “undemanding” campus switch sales compare and two consecutive quarters of sequential growth set the company up to achieve its January quarter guidance and potentially raise its 2025 outlook.