BofA Reaffirms Buy on Cisco (CSCO), Citing Growth Catalysts and Inexpensive valuation

Cisco Systems Inc. (NASDAQ:CSCO) is one of the best value stocks in Goldman Sachs’ portfolio. On September 22, 2025, Bank of America Securities analyst Tal Liani reiterated his bullish stance on the stock with a Buy rating and an unchanged price target of $85. Liani pointed to four major growth drivers supporting the outlook: the ongoing campus switching refresh cycle, increasing share in hyperscaler AI infrastructure, improving momentum in security, and synergies from the Splunk acquisition.

The analyst highlights that Cisco’s networking business, its largest revenue contributor, continues to benefit from cloud and enterprise demand. While security growth has been uneven, management expects Splunk integration to expand its product offerings and improve competitive positioning.

Valuation also lends support to the case, with Cisco trading at roughly 17 times forward EV/FCF, which the analyst finds attractive. This relative valuation discount, combined with visible growth catalysts, underpins his confidence in the company’s long-term outlook.

Cisco Systems Inc. (NASDAQ:CSCO) is a networking and communications technology company that provides hardware, software, and services, including routers, switches, cybersecurity solutions, and cloud-based collaboration tools.

While we acknowledge the potential of CSCO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.