Why Analysts Are Split on Cisco Systems, Inc. (CSCO)

Cisco Systems, Inc. (NASDAQ:CSCO) is among the most undervalued tech giants to buy according to hedge funds. As of December 26, Cisco Systems, Inc. (NASDAQ:CSCO) has a ‘Buy’ or equivalent rating from slightly more than half of the analysts covering the stock. With a median one-year price target of $86.50, the stock exhibits a 10.84% upside potential. Among the analysts with a neutral view on the stock is Tim Long, an analyst at Barclays, who reaffirmed a ‘Hold’ rating on CSCO and set a price target of $76 on December 11.

Later on December 17, Morgan Stanley lifted the price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $91 from $82, and kept the ‘Overweight’ rating unchanged. This implies an upside potential of approximately 17% relative to the current price. As reported by The Fly, the analyst highlighted that AI trade has expanded beyond semiconductor names within the year, favoring infrastructure names, especially within optical.

Trade can continue its momentum, particularly in optical, through the first half of next year, but investors will “need to get more selective for full year returns given multiples,” the analyst added in a year-ahead note on the group.

On the same day, Cisco Systems, Inc. (NASDAQ:CSCO) announced that shareholders approved an amended and restated version of the company’s 2005 Stock Incentive Plan at its annual meeting held a day earlier. Under the revised plan, the number of shares authorized will increase by 57,490,000 shares.

Cisco Systems, Inc. (NASDAQ:CSCO) is an American technology company that specializes in networking hardware, software, telecommunications equipment, and high-technology services.

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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