Cisco keep Outperform rating at Evercore as analysts highlight Networking business

Evercore kept its Outperform rating on Cisco Systems (NASDAQ:CSCO) with a $72 price target while highlighting key aspects for investors.

Analysts led by Amit Daryanani said there has been much debate around if Cisco can sustain its upward trajectory as compares get more difficult and we deal with a CFO transition. Fundamentally, the analysts added, they think Cisco remains positioned to build on its recent share price momentum with several tailwinds across its Networking segment that should enable it to deliver upside to current expectations in fiscal 26/27.

The analysts think a resurgence in the core Networking business can enable EPS of more than $4.50 in addition to multiple expansion towards 18 to 20 times should let the stock work towards mid $80s. Cisco Live event (this week) should be a catalyst for people to get more bullish on the campus refresh thesis, according to the analysts.

Daryanani and his team see three key factors driving Networking revenue growth higher than consensus — ongoing campus networking recovery; Campus product refresh; and AI product orders converting to revenue.

Cisco’s stock was largely flat premarket on Tuesday.