Cisco (CSCO) PT Raised to $73 at JPMorgan

JPMorgan analyst Samik Chatterjee raised the price target on Cisco (NASDAQ: CSCO) to $73.00 (from $69.00) while maintaining a Overweight rating.

The analyst comments: "Cisco’s F2Q25 (Jan-end) results ticked many of the boxes, including: 1) Reinforcing the improvement in the demand cycle with revenue and order trends from all customer verticals improving on an underlying basis; 2) Revenue upsides for Core Networking driving greater confidence in upsides for FY25 (Aug-end); 3) Alleviating concerns around a significant impact from the increased scrutiny on Public Sector/Fed spending; 4) Highlighting moderate cost headwinds for tariffs, while also noting mitigation levers in the form of both pricing and supply chain flexibility; and 5) Downplaying concerns of temporary dislocations in demand trends from the pull-forward of orders to avoid tariffs. While the macro backdrop still remains mixed, Cisco is seeing priority from Enterprise customers to spend towards modernizing infrastructure (Datacenter and Campus), as well as strong Cloud demand, including triple-digit order growth from Hyperscalers (orders surpassed $700 mn for F1H and is positioned to exceed prior $1 bn target), and improving demand trends from Telco customers to get their networks ready for AI-led traffic demand. Regarding Enterprise adoption of AI, Cisco highlighted a significant uptick in interest for integrated systems, including Nexus, UCS and AI Pods, which we expect to build to be a key driver of improvement in demand for the portfolio with broader proliferation of AI investments to the Enterprises alongside continued momentum from Hyperscalers."

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